Mortgage brokers expect more landlords seeking mortgages via limited companies during 2024, it has been claimed.

Lender Paragon says half of the 300 mortgage brokers it polled said they expect to place more limited company buy-to-let business during 2024 on behalf of portfolio landlords, while 45% said the same for landlords with just one or two properties.

Currently, nearly a third of mortgages (29%) are written to portfolio landlords operating through limited companies and 15% for non-portfolio landlords.

“Intermediaries are right to expect to see more limited company business this year,” says Louisa Sedgwick, Paragon Bank Commercial Director of Mortgages (pictured).

“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.”

Limited company

The poll’s findings reflect an earlier study by Paragon, which found that two-thirds of landlords who plan to invest in property during the next 12 months will do so through a limited company, compared to 15% who will finance in personal name.

The latest research was undertaken by BVA BDRC for Paragon’s Mortgage Intermediary Insight Report (MIIR).

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