The guide, entitled Using a Limited Company for Buy-to-Let Properties, provides information detailing its underwriting process for limited company cases, and the specific products it offers to borrowers.
It also outlines potential advantages and disadvantages of limited company ownership, and focuses particularly on the forthcoming changes in buy-to-let tax relief.
Chancellor George Osborne announced in the Summer Budget that claims on monthly mortgage repayments will be reduced to 20%, from a current maximum of 45%, regardless of how much landlords pay. The changes will be phased in from April 2017.
Fleet Mortgages, which deals only with intermediaries, recently upped the number of buy-to-let products available for this use due to its predictions of a growing number of clients opting to develop their portfolios through a limited company.
Bob Young (pictured), CEO of Fleet Mortgages, said: “Undoubtedly, there has been a surge in interest in limited company buy-to-let vehicles since the Chancellor’s announcement in July, but even prior to this we were seeing many professional landlords looking at the company structure in order to develop their portfolios.”
He went on to explain that the guide aims to provide intermediaries with a source of information to discuss with clients considering such a move, given the interest from borrowers and the sometimes ‘conflicting’ information issued on this area.
“In all of this, research and client-specific information is key because a limited company approach may not be right for every single client,” Young added.
“There is much to consider, not least mortgage availability and pricing, but also whether it is worthwhile transferring existing properties into the company or if it should just be used for new properties.”
