Close to half of mortgage brokers (49%) are anticipating to place more limited company buy-to-let (BTL) business throughout the next year, Paragon Bank research has shown.
A study by the bank also indicated that 45% of brokers expect an uptick in non-portfolio limited company business during the next 12 months.
The findings, based on research among 337 mortgage intermediaries undertaken by BVA BDRC on behalf of Paragon, revealed that around three in 10 mortgage cases (29%) are written to portfolio landlords operating through limited companies, and 15% for non-portfolio landlords.
Around a third of brokers, 34% and 32% respectively, think they will see the same volume of business from portfolio and non-portfolio landlords utilising limited company structures.
However, Paragon also reported that a significantly lower proportion of brokers, 11%, think the next 12 months will see them introduce more business to both portfolio and non-portfolio landlords borrowing in personal name.
Commercial director of mortgages at Paragon, Louisa Sedgwick, 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 BTL property ownership.”
Paragon’s latest findings also align with a separate study by the bank, which found that 64% of landlords who plan to invest in property in the next 12 months will do so through a limited company, compared to 15% who will finance in personal name.
This limited company purchase intent proportion is averaged across the range of portfolio sizes and increases to 82% among landlords with six or more properties.
“Owning properties through a limited company can enable landlords to offset finance costs, such as mortgage interest, against rental income,” Sedgwick added.
“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.”
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories