David Whittaker, managing director of Mortgages for Business said: “Landlords have woken up to the fact that transacting via a corporate vehicle is a feasible option and in many cases, the most prudent route going forward. I wouldn’t be surprised if the percentage continues to rise as landlords, especially the higher tax rate-paying ones, prepare for the forthcoming changes to relief on finance costs.”
The total number of buy to let mortgage applications (made by both individuals and limited companies) rose by 27% in January compared to December 2015.
Mr Whittaker said: “The increase is due to landlords trying to get as many purchases as they can completed before the stamp duty surcharge comes into effect on 1st April, after which I would expect transactions to return to more considered levels.”
