Landlords open to expansion via Limited Company route

The latest property survey found that there is still a significant appetite to invest in property, despite most of those surveyed understanding that they would be affected by the changes to income tax liability. Around 75% of those looking to buy said that buy-to-let would be for part of the mix, while houses in multiple occupation (HMOs) were also flagged as an option.

Those surveyed also stated they were going to look very seriously at setting up a limited company for any further expansion.

What’s really happening is the market is getting far more specialised. Portfolio landlords are coming to the fore, as fewer people are getting into buy-to-let as an alternative pension strategy. It seems the “serious” landlord is very open to expansion particularly in the (HMO) sector.

The broker role expands

The buy-to-let mortgage market has changed significantly over the past 3 years and has become far more specialised. With HMO’s and limited company mortgages taking more centre stage.

The role of the broker will grow as lenders increasingly rely on them to help landlords understand the changing environment and prepare the paperwork that is now required when applying for a mortgage.

Landlords are learning very quickly that finding the right mortgage is no longer a simple exercise, hence the growth of the professional broker.

One multiple property owner in the South East said, “I’ve been using a broker for both my new and re-mortgage deals for the past 3 years, yes there are fees associated but they are fair and save me hours in research”. “Another key factor to using a broker is you will get the best deal to meet your needs and thus save money on interest charges”.

Can we help you?

If you want assistance with your next buy-to-let mortgage please do make contact and one of our experienced independent advisers will be happy to help.