The Council of Mortgage Lenders says it expects more mortgage products to be launched for small-scale buy to let landlords setting up as companies.
The CML says setting up a company is not necessarily appropriate for every landlord and each person considering it should consult an independent financial adviser.
But it reports a surge in interest for ‘company mortgages’ even amongst individuals with just one, two or three buy to let properties.
This is because rental income in such a case goes into the company and is taxed at the corporation tax level of 20 per cent or less. Meanwhile landlords operating as individuals may pay higher rates of income tax and, from next April, face reductions in the mortgage interest tax relief they may receive.
