According to a survey from Paragon, which collated views from 300 brokers, an additional 45 per predict an uptick in non-portfolio limited company business in 2024.
Around a third of mortgage cases are written to portfolio landlords operating through limited companies and 15 per cent for non-portfolio landlords.
The research continued that 34 per cent and 32 per cent respectively think that they will see the same volume of business from portfolio and non-portfolio landlords using limited company structures.
Only 11 per cent think that the next 12 months will see a rise in more business to both portfolio and non-portfolio landlords borrowing in personal name.
Louisa Sedgwick, Paragon Bank’s commercial director of mortgages, said: “I think intermediaries are right to expect to see more limited company business this year. It is a structure that has become increasingly popular with landlords in recent years as they have responded to government changes to the tax treatment of buy-to-let property ownership.
“Owning properties through a limited company can enable landlords to offset finance costs, such as mortgage interest, against rental income. It’s wise for borrowers to seek professional advice because incorporation may not be the best route for all landlords and the benefits can vary based on individual circumstances.”
This research backs up what brokers have been seeing on the ground, with analyses done by this publication in November and December revealing that there has been an increase in landlords opting for limited companies.
In a blog post on Mortgage Solutions, managing director of mortgages at Paragon Richard Rowntree said that the rise in limited company lending was due to the change in mortgage interest tax relief that could be claimed by buy-to-let landlords.
More landlords are opting for limited company structures as they can deduct mortgage interest payments and other fees from their income, allowing them to save money, he explained.
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