Limited company applications surge in June

Buy to Let Club has reported a sharp increase in the number of buy to let loans that are being applied for via limited companies.

Related topics:  Landlords
Rozi Jones
22nd August 2016
ying tan
"We saw an unusually high number of limited company applications in June this year totalling 22% of our packaged cases and July has proved to be another strong month."
- Buy to Let Club

This trend aligns with Kent Reliance research which suggests that almost 40% of buy to let loans could be via limited companies by the end of 2016.

Buy to Let Club says that increasing numbers of landlords are being pushed in this direction due to the significant changes to tax relief that will start to come into force from next year.

Ying Tan, managing director of Buy to Let Club, commented: “We saw an unusually high number of limited company applications in June this year totalling 22% of our packaged cases and July has proved to be another strong month. We are seeing limited company rates falling as competition in the market heats up in preparation for the tax changes in 2017 and landlords are clearly taking advantage of this.”

With this noticeable surge, Buy to Let Club has secured a limited company exclusive with Precise Mortgages. The product offers a three-year fixed rate of 3.54% until 31 October 2019, available up to 75% LTV with an arrangement fee of 1.50%.

Early repayment charges are 3% until 31 October 2017, followed by 2% in the following 2 years. The revert rate is LIBOR plus 4.42%.

Alan Cleary, managing director of Precise Mortgages, added: “We work closely with Buy to Let Club in mortgage product design and this type of product is growing in popularity and I expect it to be a popular choice amongst brokers and landlords.”

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