Limited company buy-to-let mortgages jumped again in January and now make up 42% of all new cases, lender figures show. This has helped to maintain the momentum in buy-to-let market, despite the looming tax crackdown by the Chancellor George Osborne. Investing in buy-to-let through a limited company has become relatively more advantageous after higher rate tax relief for private investors is phased out in 2017. This action is being challenged by a group of landlords in the courts and all involved are eagerly awaiting the outcome of the action. New figures from a leading provider show that applications made by limited companies hit a high of 42% and this figure is expected to continue rising. The provider pointed out that in December last year this figure was 37% of all applications received. The great news is that the figures also showed a very healthy 26% increase overall in January of this year. These figures show that landlords have woken up to the fact that transacting business via a corporate vehicle is a very feasible option. Accountants around the country have confirmed recently that buy-to-let landlords are currently their largest growth area of business. One of our regular clients commented “I have formed a Limited Company for my buy-to-let business and although extra work is involved the potential rewards warrant this action.” “I am eagerly waiting to see how the court action against Government and the proposed tax changes concludes.” “Even if the action is unsuccessful I can still see a good profit potential within my portfolio as I have now formed the limited company.” Need help? If you require assistance with your new or re-mortgage please give one of our fully experienced advisers a call and we will be happy to assist.
