Allow Landlords to evict tenants where there are 14 days rent arrears14:34 PM, 1st October 2020
About 3 weeks ago 97
Mortgages for Business data shows that for quarter 4 last year 69% of all new Buy to Let purchase applications were made in the name of a limited company.
This is an increase of 6% on quarter 3 and a massive increase on the average of 21% in limited company names before Section 24 mortgage interest relief reductions for private landlords were announced in the 2015 Summer Budget by George Osborne.
The percentage of remortgage applications in company names also increase to 31% in Q4 up from 23% in Q3 last year.
The total number of lenders offering Buy to Let finance to limited companies remained stable at 14 and the total number of products available rose slightly from 195 in Q3 to 198 in Q4.
David Whittaker, Mortgages for Business MD said, “the sharp increase in purchase applications made by landlords using a limited company structure is unsurprising given the financial incentive to do so, and it is encouraging to see growing numbers of landlords approaching their investments intelligently. With the changes to tax relief set to be phased in from April 2017, this trend is unlikely to be reversed any time soon.
“Although many mainstream lenders do not yet have an offering for investors using limited companies, many smaller lenders have significant expertise when it comes to servicing this part of the market.”
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