A survey by Coventry for Intermediaries found that only 20% of landlords who go directly to a lender feel confident about limited company BTL business.
The results show that brokers play a vital role in offering “reassurance and guidance” throughout the “complexities of incorporation”, Coventry for Intermediaries said.
Figures from Hamptons earlier this year showed that there are over 400,000 companies in the UK holding BTL properties, which is the first time it has exceeded this figure. This is partially due to tax benefits.
Consequently, the market for limited company BTL business has grown, with more lenders entering the space in the past few months. This includes BM Solutions, NatWest and Coventry for Intermediaries.
The report noted that the top three areas that landlords want to understand when it comes to incorporating a limited company are tax implications at 32%, long-term benefits at 31% and transferring properties into a limited company at 30%.
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
Around 40% of landlords said “mortgage-specific expertise” is what they value most in a broker, with 37% pointing to getting the cheapest deal.
A third of landlords said they want their mortgage broker to understand their financial goals and provide financial advice.
Approximately 70% of brokers said the proportion of clients asking about limited company BTL had risen.
However, only one in seven brokers said they feel “fully prepared” to meet the demand of new limited company BTL landlords entering the market.
Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries, 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.
“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. This is a real opportunity for brokers to position themselves as trusted partners, reduce client stress, and build long-term relationships in a growing market.”
