Limited Company BTL charges to be tackled by the industry

Limited Company BTL charges to be tackled by the industry

According to Foundation Home Loans, landlords will not have to look far in future to find lenders which do not overcharge for Limited Company BTL mortgages.

FHL announced in December that its own Limited Company BTL mortgage would be priced at the same rate as its core range.

According to Commercial Director, Simon Bayley, at a time when landlords are under pressure because of tax and stamp duty changes, it cannot be right to expect clients to stump up extra just because of the novelty and lack of choice.


Simon said: “Certain lenders are charging up to 100bps extra for this product over their core range, when the risk is no different - effectively asking landlords to pay any tax saving from using a limited liability company structure to the lender instead. Fortunately, the intermediary community is far too canny to go on selecting lenders who decide on this kind of pricing model.

As soon as they realise that there are lenders, like FHL, who are not in the market to take short term advantage of landlords keen to minimise their tax exposure, then I am sure that market forces will dictate that this kind of overpricing will quickly disappear. It certainly will not win any friends among advisers and their landlord clients in the long term.”

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Latest Comments

warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
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"Make it look like you are at home": often people forget this and share on facebook their location!

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Jonathan
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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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