{"id":22215,"date":"2018-12-05T09:41:35","date_gmt":"2018-12-05T09:41:35","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=22215"},"modified":"2023-10-10T11:26:26","modified_gmt":"2023-10-10T10:26:26","slug":"limited-company-buy-to-let-mortgage-sector-set-for-growth","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/limited-company-buy-to-let-mortgage-sector-set-for-growth\/","title":{"rendered":"Limited company buy-to-let mortgage sector set for growth"},"content":{"rendered":"

As landlords move their portfolios to a company structure, buy to let company mortgages have more than doubled over the past two years.<\/strong><\/p>\n

Despite the trend in the buy-to-let sector for landlords to move into operating their buy-to-let (BTL) business as a limited company,<\/a> lenders have been slow to respond. However, this could be changing as Hinckley and Rugby Building Society launch their own BTL limited company proposition.<\/p>\n

According to Hinckley & Rugby\u2019s head of sales and marketing Carolyn Thornley-Yates,<\/p>\n

\u201cThere is a relative lack of lenders offering mortgages to be held in the name of a limited company,<\/a> so we look forward to\u2026 bringing our competitive products to brokers and their customers.\u201d<\/p><\/blockquote>\n

The mutual lender is offering a two-year discount product at 2.99% and a two-year fixed at 3.30% through distributor 3mc. Both mortgage products are designed for properties held within special purpose vehicle limited companies. The maximum loan to value for both products is 70%, with fees of \u00a31,500, no early repayment charges and a scale valuation fee.<\/p>\n

Limited company landlords expected to drive the market <\/strong><\/p>\n

Figures from Shawbrook Bank show that between the first half of 2015 and the same period in 2018, the number of individual landlords completing buy to let<\/a> mortgages fell by half to just 34% of all BTL mortgage completions.\u00a0 However, significantly in the same time frame, the proportion of limited company BTL mortgages doubled from 32% to 64%.<\/p>\n

Shawbrook predicted that the demand for individual investor BTL mortgages would continue to fall in their July assessment of the buy to let market.<\/p>\n

This could be considered bad news for lenders, but as individual investor mortgages fall, the industry is expecting to see growth in the area of limited company BTL mortgages as a direct result of the increasing number of landlords moving their property portfolios into a limited company structure.<\/p>\n

Until now product options for landlords building a limited company portfolio have been restricted to a handful of specialist lenders.<\/p>\n

However, the launch of Hinckley and Rugby Building Society\u2019s new proposition indicates that mortgage providers might be making a move to capitalise on rising demand and borrowers should expect to see their options expand as new lenders enter the market.<\/p>\n","protected":false},"excerpt":{"rendered":"

As landlords move their portfolios to a company structure, buy to let company mortgages have more than doubled over the past two years. Despite the trend in the buy-to-let sector for landlords to move into operating their buy-to-let (BTL) business as a limited company, lenders have been slow to respond. However, this could be changing… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":14749,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,26],"tags":[22,341],"class_list":["post-22215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-tax-mortgages-money","tag-buy-to-let","tag-newsletter"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/22215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=22215"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/22215\/revisions"}],"predecessor-version":[{"id":6097468,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/22215\/revisions\/6097468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/14749"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=22215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=22215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=22215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}