According to Paragon Bank's research, just under half of mortgage brokers expect to arrange more*** buy-to-let business in the next 12 months. According to a survey of more than 300 brokers, 49% of agents expect more buy-to-let mortgages to be given to portfolio landlords who operate through ***. In addition, 45% expect more non-portfolio*** business in the next 12 months.
Currently, nearly one-third of mortgage cases are given to portfolio landlords operating through ***, while 15% are to non-portfolio landlords.
According to research commissioned by Paragon and conducted by BVA BDRC, about a third of brokers believe they will receive the same amount of business from portfolio and non-portfolio landlords who utilise *** structures.
Conversely, only 11% of brokers believe they will introduce more business to portfolio and non-portfolio landlords who borrow in their own names in the next 12 months.
Louisa Sedgwick, commercial director of Paragon's mortgage business, believes that this year will see more *** business. This is a structure that has become increasingly popular with landlords in recent years, as they respond to changes in tax policy on buy-to-let purchases.
Owning a property allows the landlord to offset financing costs, such as mortgage interest, against rental income. Borrowers should seek professional advice as corporatization may not be suitable for all landlords and benefits may vary depending on individual circumstances.
These findings are consistent with the findings of another study conducted in Paragon's PRS Trends report, which found that 64% of landlords who plan to invest in real estate over the next 12 months will do so through ***, while only 15% will do so on their own behalf.