The changes will allow brokers to submit online applications for standard self-contained properties, houses in multiple occupation (HMO) and multi-unit block properties.
Enquiries about buy-to-let purchases through limited companies have soared in recent months after the Budget announcement last year that the amount of tax relief available for landlords on their mortgage interest payments would gradually be limited to the basic rate of 20%.
By transferring properties across from an individual name to a limited company, property investors can declare their mortgage interest payments as a business expense.
John Heron, managing director of Paragon Mortgages, said: “Moving the process for applying for limited company applications online means we are improving the service we provide intermediaries, making it easier and more time efficient for them to submit these types of applications.
“Following the changes announced by the Chancellor last year in respect of tax relief, we know more landlords are considering incorporation. Research by BDRC Continental for Q4 shows 41% of landlords either currently operate this way, are already moving their portfolio into a corporate structure or are considering this option.”
