Landlords boost limited company confidence when using BTL brokers

There’s a growing reliance of landlords on buy to let mortgage brokers when navigating the complexities of limited company BTL arrangements, a survey reveals.

The findings from Coventry for Intermediaries show that 55% of landlords engaging a broker for their limited company BTL feel ‘very confident’ in the process.

That’s in stark contrast to the 20% of landlords who opt to approach lenders directly.

Coventry says the gap underscores the crucial role brokers play in fostering assurance among property investors.

Landlords want tax clarity

The lender’s head of intermediary relationships, Jonathan Stinton, said: “Incorporating a BTL portfolio can be complex and, at times, overwhelming, with landlords facing challenges around tax, legal structure and transferring properties.

“Our research shows landlords are looking for clarity and expert advice, not just the cheapest deal, to help them make informed and confident decisions.”

He added: “Brokers play a vital role in simplifying this journey.

“By offering tailored guidance and demystifying the process of incorporation, they can reassure clients at every step.”

Professional guidance for landlords

The report, The Broker’s Guide to Limited Company BTL Mortgages, identifies key areas where landlords seek professional guidance.

Tax implications top the list, with 32% of landlords prioritising this concern, followed closely by long-term benefits at 31%.

The intricacies of transferring properties into a limited company are at 30%.

The figures reflect the demand for clear, expert advice as the limited company BTL market expands.

Specialist BTL knowledge

The lender also found that landlords value specialist knowledge above all else, with 40% pointing to broker expertise as their primary consideration.

That’s higher than the appeal of securing the lowest-cost mortgage, which 37% prioritise.

This preference highlights a shift towards valuing informed guidance over purely financial incentives.

Also, 33% of landlords expect brokers to meet with their financial aspirations and provide tailored advice.

And 70% of brokers report a surge in enquiries about limited company BTL structures.

However, the research also reveals challenges for less experienced brokers.

For those handling just one to five cases annually express lower confidence, with only one in seven feeling fully equipped to support new landlords entering this market.

This gap presents an opportunity for brokers to enhance their skills and communication to meet rising demand, Coventry says.

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