A third of all landlords intend to remortgage over the course of the next 12 months, with larger, portfolio landlords much more likely to do so within a limited company.

According to Foundation Home Loans, when landlords were asked how they intended to remortgage, 53% said they would do so as an individual, 19% said they would do so within a limited company, while 17% said it would depend on their circumstances at the time. However, those landlords with larger portfolios – 11-plus properties – were much more likely to remortgage within a limited company structure, with over a quarter (26%) saying they would do so within the next year.

Research undertaken by BVA BDRC on behalf of Foundation Home Loans based on 738 online interviews continued to show that larger landlords in particular are keen to utilise the full tax relief advantages of holding properties within a limited company, and that this will naturally lead to greater levels of remortgaging within such structures.

Foundation Home Loans director of marketing Jeff Knight commented: “Understandably when it comes to remortgaging there is a continued shift towards the use of limited company vehicles particularly as we see the growth in portfolio and professional landlords who understand the advantages of holding their properties within such corporate structures. The ability to secure full mortgage interest tax relief, which is not available when holding properties as an individual, is a clear incentive for the move towards limited company borrowing.

“As a lender we’ve certainly seen a shift towards limited company business and our aim is to offer a competitive product offering, clear criteria and a smooth service for those landlords seeking to remortgage. It’s also clear that remortgaging remains the bedrock of the buy-to-let market and, because of that, advisers should be making regular contact with their existing clients in order to ensure they secure that repeat business, and they take advantage of the highly-competitive market that exists.”

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