Complex Buy To Let
Four more buy-to-let lenders to launch this year – Whittaker
There will be 37 buy-to-let mortgage lenders by the end of 2016, with four more to launch this year, an increase of 32% over the last two years says David Whittaker, managing director of Mortgages for Business.
Of the 37, 14 are predicted to offer mortgages to limited companies, compared to 10 lenders out of a total of 33 in 2015 and six out of 28 in 2014.
Whittaker (pictured) shared his projections with brokers at the Birmingham leg of The Buy To Let Market Forum, a Mortgage Solutions event, during his talk on tax implications for landlords.
Limited company products are expected to climb from 99 out of a total of 914 in 2015, to 155 out of a total of 1,040 by the end of the year.
Whittaker said at present about a third of the market was offering limited company products which accounted for around 15% of all products.
“A lot of landlords have yet to make a decision as to whether they want to incorporate,” he said. “The amount of lenders serving the limited company market is not a bad position to be in, why should lenders all line up on the starting line for a race that has yet to happen.”
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The Mortgages for Business MD said all new entrants to the buy-to-let market would have to have limited company offering on day-one otherwise they would fail to grab brokers and landlords’ attention.
“If they come into the vanilla buy to let space they are going to be beaten on price by the likes of Accord or Metro so if they want to have a competitive edge they’ll have to have a limited company proposition,” he added.
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