Landlords looking to buy-to-let through a limited company have been handed a boost, with Precise Mortgages launching an exclusive three-year fixed rate mortgage.
The product will only be available for those investors looking to lend through a limited company, and is fixed at 3.54 per cent.
Buy-to-let mortgage repayment charges
The tailored product - which has an arrangement fee of 1.5 per cent - is designed specifically for a growing market.
Repayment charges have been set at three per cent for the first year of the mortgage, with the two final years seeing charges drop to two per cent.
Following the three-years, the revert rate of the new product will be set at 4.42 per cent plus LIBOR.
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Is limited company buy-to-let lending a growing trend?
Foundation Home loans recently predicted that a staggering 75 per cent or more of all borrowing for buy-to-let mortgages will be through limited companies next year.
And Ying Tan, Precise Mortgages’ managing director, supported these predictions, stating: “We saw an unusually high number of limited company applications in June this year totalling 22 per cent of our packaged cases and July has proved to be another strong month.”
The move to borrowing via limited companies is likely in response to the many buy-to-let changes that have hit landlords, and will mostly come into play in 2017.
What do you make of BTL lending through limited companies? Let us know below.