We can help you find your perfect mortgage today...

Telephone: 0800 9701795

0800 9701795

Are you considering the Limited Company option?

Posted on Monday 23rd January, 2017

With rates holding low at 0.25%, investing in property could still be a good idea for many. This is despite the tax changes that are due to begin from April 2017, at which point the tax relief that landlords of residential properties receive for finance costs will start to be restricted to 20%. This change will be gradually phased in to be fully in place by April 2020.

So why limited companies?

Limited companies set up for the sole purpose of buying and letting property, will not be affected by the upcoming changes. That’s why many landlords are considering setting up limited companies to mitigate the personal impact. As this demand for limited company loans increases leading up to April, some lenders have updated their product ranges to cater for this emerging demand.

Research from leading buy to let specialist lender Kent Reliance has revealed that more landlords are already moving their buy to lets into limited companies. In fact, the lender revealed that over 100,000 buy to let mortgage loans have been issued for limited companies before December in 2016. This is double the figure of the whole of 2015, suggesting that more and more people are considering the option.

But is this option right for you?

There is no easy answer, although it may be a possible solution for some circumstances. You may be considering using the limited company strategy whether you are a professional landlord, an investor with a portfolio or even looking at purchasing your first buy to let property.

Although there is no way to avoid the changes in stamp duty on second homes, becoming a corporate entity may indeed mean avoiding the changes in tax relief. But this is a complicated area and these tax changes will often affect each landlord differently. That’s why talking to us about your mortgage needs and seeking tax advice from your accountant, will help prepare you for any decision on your buy to let investment.

 

Terry Davis

0800 970 1795

07702 312259

terry@acorn4mortgages.co.uk

 


Contact us now Let us help you with your mortgage needs →


Our Other Services
What we need to tell you

Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee for mortgage advice will be charged on completion of your mortgage. This fee will typically be £300 up to a maximum of £500. We will receive commission from the lender in addition to the fees you pay. We also offer a fee only option of £1,000 – any commission received would be refunded if you choose this option.

Get in touch

Tel: 0800 9701795
Email: office@acorn4mortgages.co.uk
Skype: acornmold
Fax: 0870 762 7535

Facebook: facebook.com/acorn4mortgages
Twitter: @acorn4mortgages

The Legal Stuff

© Acorn4Mortgages Limited. Registered address: 1-3 The Mall, Ambrose Lloyd Centre, Mold, Flintshire, CH7 1NR. Registered in England & Wales under number 4270415.

Acorn4Mortgages Limited is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service. You may be able to submit a claim through the EU Online Dispute Resolution Platform if you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.