Number of landlords setting up limited companies rises nearly four-fold

The number of landlords setting up limited companies to run their businesses through has increased dramatically as the April 6th tax relief deadline looms, it has been claimed. Lender Mortgages for Business says the number of landlords applying for loans through limited companies has increased from 21% of all applications in 2015 to 77% of today, an almost four-fold increase. Purchases and transfers Mortgage for Business says the increase is made up of both landlords purchasing properties through newly set-up limited companies, and those transferring existing personally-owned properties to limited companies. The government is gradually reducing the finance cost relief that landlords personally receive on their mortgage interest payments each year between now and 2021, when the relief will end. Limited company mortgages are also quickly starting to eat up more of the overall buy-to-let market, increasing from 18% two years ago to 47% today, and the number of buy to let mortgages available has increased too, by more than a third. “With the changing face of the buy to let mortgage market, it is no surprise that lenders are keen to appeal to limited company borrowers,” says David Whittaker, CEO of Mortgages for Business (pictured, left). “We have been…

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