Landlords are taking advantage of a loophole in government efforts to halt the buy-to-let boom by setting up a limited company and holding property in the firm’s name — rather than their own. This way, investors will be able to retain certain tax breaks that the government is soon to scrap.
There is a separate mortgage market for landlords who operate as a company and it is quietly gathering pace. Andrew Montlake at Coreco says: “We have already seen an increase in the number of buy-to-let investors looking into borrowing in a company name and lenders are starting to respond.”
Aldermore has cut rates on its buy-to-let mortgages for limited companies from 5.78 per cent to 4.78 per cent.
Montlake says: “We know that there