PEER-TO-PEER property lender Landbay is offering some of the best value rates for landlords who have registered as limited companies, as it is revealed that that the number of fixed limited company mortgages has tripled in just two years.
New data from comparison website Moneyfacts has revealed that there are now 235 fixed mortgages on the market which cater specifically to limited company landlords.
In April 2016, there were just 80 such products.
Two of Landbay’s products were listed among the five lowest priced mortgages for limited companies, and the P2P platform was also singled out for having one of the cheapest five-year fixed rates in the UK as of April 2018.
“Landbay has established itself as an innovative and responsive lender in the buy-to-let space, offering landlords a credible investment opportunity alongside a competitive source of funding for professional landlords,” said Landbay’s chief executive and co-founder John Goodall (pictured).
“As landlords move to navigate what has fast become a complex environment, so too must lenders ensure that affordability calculations are robust and in line with the rest of the industry.
“Our rates ensure we remain competitive whilst our criteria enables us to serve a wide range of specialist borrowers seeking a fast decision and funding, specialising in everything from HMOs (houses in multiple occupation) and MUFBs (multi-unit freehold blocks) to limited companies and new build properties.”
According to Moneyfacts’ calculations, the average two-year fixed buy-to-let (BTL) mortgage rate for limited companies is 4.29 per cent.
By comparison, Landbay is offering rates of 3.09 per cent on mortgages with up to 75 per cent loan-to-value (LTV).
The cheapest product on the market is currently being offered by Danske Bank at 2.78 per cent, but this rate is only available for a maximum LTV of 60 per cent.
Moneyfacts finance expert Charlotte Nelson suggested that the boom in limited companies is down to last year’s upheaval in the BTL market.
“The reality of last year’s tax changes hit landlords hard, as they were unable to claim tax relief,” said Nelson.
“With things working slightly differently for limited companies, many landlords started to shift their focus from individual ownership to this type of private company.”