FEBRUARY 03, 2016 | BY A & S Property
Ltd Co BTL transactions rise again in January
Applications made by limited companies accounted for 43% of all buy-to-let transactions in January, analysis from broker Mortgages for Business has revealed, up from 38% in December 2014.
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.
Managing director of Mortgages for Business David Whittaker 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 increase is due to landlords trying to get as many purchases as they can completed before the stamp duty surcharge comes into effect on 1 April, after which I would expect transactions to return to more considered levels.”