Fewer brokers think they will introduce more business to both portfolio and non-portfolio landlords borrowing in personal name
Mortgage intermediaries are anticipating a surge in limited company buy-to-let lending this year, research from Paragon Bank has revealed.
In a survey of over 300 brokers, nearly half, or 49%, expect to facilitate more limited company buy-to-let transactions in 2024. Similarly, 45% anticipate an increase in non-portfolio limited company business over the next 12 months.
Presently, 29% of mortgage cases are directed towards portfolio landlords operating through limited companies, while 15% are for non-portfolio landlords.
The research, conducted by market research agency BVA BDRC for Paragon’s Mortgage Intermediary Insight Report, indicates that approximately a third of brokers, 34% and 32% respectively, believe they will maintain the same volume of business from both portfolio and non-portfolio landlords utilising limited company structures.
However, a significantly lower proportion of brokers, just 11%, foresee introducing more business to both portfolio and non-portfolio landlords borrowing in personal name within the next 12 months.
“I think intermediaries are right to expect to see more limited company business this year,” commented Louisa Sedgwick (pictured), commercial director of mortgages at Paragon Bank. “It is a structure that has become increasingly popular with landlords in recent years as they have responded to government changes to the tax treatment of buy-to-let property ownership.
“Owning properties through a limited company can enable landlords to offset finance costs, such as mortgage interest, against rental income. It’s wise for borrowers to seek professional advice because incorporation may not be the best route for all landlords and the benefits can vary based on individual circumstances.”
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