The proportion of mortgage products available for investor buyers operating through limited companies has risen by over 50 per cent in just six months, and now represents one in five of all buy to let mortgages agreed.
Data from Moneyfacts shows that five years ago there were only 30 limited company mortgage products in the market for investment borrowers; a year ago it was 133 and just six months ago it had soared to 201. Now there is a record 313 products.
Likewise five years ago such products accounted for a mere five per cent of the overall buy to let mortgage market - now it’s 20 per cent.
“As the reality of April’s [mortgage interest] tax changes starts to bite, the proportion of deals available to limited companies has grown dramatically. Despite the boost in product numbers, borrowers considering this type of mortgage should be aware that they could find themselves on a more expensive deal compared to the rest of the BTL market” says Moneyfact’s finance expert, Charlotte Nelson.
“For example, the average two-year fixed rate buy to let mortgage for those applying as a limited company stands at 4.22 per cent today, whereas the average two-year fixed rate for the rest of the market is significantly less at 2.97 per cent” she adds.
%20A%20property%20tale%20for%20our%20times.png)
Join the conversation
Be the first to comment (please use the comment box below)
Please login to comment