Latest market news

The market continues to see an increase in Buy to Let Ltd companies

August, 17th 2017
At midday on 3 August, the Bank of England announced that it would not be increasing the base rate1. It remains unchanged at 0.25%, a historic low.

This news comes despite recent speculation that it may rise, after one Monetary Policy Committee (MPC) member, Andy Haldane, indicated he could back increasing interest rates at the meeting last month2. This statement, alongside the 3-5 vote in favour of raising the base rate, in June (a significant jump from 7-1 in May), were signs of an upcoming potential rate rise2.

MPC member, Ben Broadbent, quelled this speculation when he stated in July that the direction of the economy remains too unclear to increase the base rate3. Market commentators claimed the views of Broadbent were key to assessing the chances of a first rate hike in a decade3, something to take into account in future months.

The rate remaining low means that lenders can continue to be flexible and maintain lending levels in the UK. It also makes now potentially a very good time to consider a property purchase or remortgage, with speculation of a rate rise later in the year remaining among many market analysts.

In the mortgage market recently, there has also been attention drawn to buying or remortgaging Buy to Let investments through a limited company. This comes as more than half (51%) of Buy to Let lending, including both purchases and remortgages, was through limited companies in the second quarter of 20174.

These figures are in line with the alterations to the Buy to Let basic rate tax reduction, implemented from April this year. The changes will be fully in place by April 2020, when landlords will no longer be able to deduct any mortgage interest payments from their taxable profit.

Limited companies are not affected by this regulation change. Landlords who borrow through a limited company can continue to deduct all their mortgage interest payments when working out their taxable profits5, therefore saving money on their tax bill. However, landlords will still pay Stamp Duty and Capital Gains Tax, if transferring a personal property into a limited company, as this would be considered a sale and purchase.6

We may be able to assist professional landlords in transferring their properties into a limited company, whilst reducing their Stamp Duty and Capital Gains Tax costs. This is subject to individual circumstances. largemortgageloans.com is not authorised to give tax advice. It is advisable to seek guidance from your tax advisor when it comes to considering tax implications.

You may wish to take advantage of low rates and great terms currently still available. If you are looking to expand your Buy to Let portfolio through a limited company or as an individual, please call us 020 7519 4985 or send us an email to speak to one of our experienced Mortgage Managers.

 

 


  • This Month's Top Fixed Rate

    Fixed rate
    Initial rate: 1.13%

    Period: 2 Year

    Rate will revert to the lender's standard variable rate currently 4.74%
    The overall cost for comparison is 4.17% APR

    1.13%

    More info
  • This Month's Top Variable Rate

    Variable rate
    Initial rate: 0.99%

    Period: 2 Years

    Rate will revert to the lender's standard variable rate currently 3.74% which will not go below a floor of 3.49% thereafter
    The overall cost for comparison is 3.36%

    0.99%

    More info

    Get This Rate


Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

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Tel: 020 7519 4900
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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Changes in the exchange rate may increase the sterling equivalent of your debt

Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9RP which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No 302228 which can be viewed here: www.fca.org.uk/register/. The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. Help and advice in regards to mortgages is available at www.moneyadviceservice.org.uk

Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission, reference number: 2269418, as a Non-Regulated Financial Services Business.

A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £300,000 the fee would be £3,510 in total. Of this, £702 (20%) would be payable on application and the balance of £2,808 (80%) on completion. The total fee is non refundable. We may also be paid commission from the lender. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Calls may be recorded for training and monitoring.
You may have to pay an early repayment charge to your existing lender if you remortgage.

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