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A third of all BTL landlords intend to remortgage over the next 12 months

A third of buy-to-let landlords plan to remortgage in the next year, with those looking to add to their portfolio more likely to do so via a limited company vehicle, fresh research shows.

The study, undertaken by BDRC on behalf of Foundation Home Loans, found that 53% of landlords intend to remortgage as an individual, 19% plan to do so within a limited company, while 17% said it would depend on their circumstances at the time.

According to the survey, landlords with 11-plus properties were much more likely to remortgage within a limited company structure, with just over a quarter - 26% - saying they would do so within the next year.

The study also revealed that just 14% of landlords are currently planning to acquire property over the next 12 months, with 55% planning to do so via a limited company.

Jeff Knight, director of marketing at Foundation Home Loans, commented: “Understandably when it comes to remortgaging there is a continued shift towards the use of limited company vehicles particularly as we see the growth in portfolio and professional landlords who understand the advantages of holding their properties within such corporate structures.

“The ability to secure full mortgage interest tax relief, which is not available when holding properties as an individual, is a clear incentive for the move towards limited company borrowing.

“As a lender we’ve certainly seen a shift towards limited company business and our aim is to offer a competitive product offering, clear criteria and a smooth service for those landlords seeking to remortgage.

“It’s also clear that remortgaging remains the bedrock of the buy-to-let market and, because of that, advisers should be making regular contact with their existing clients in order to ensure they secure that repeat business, and they take advantage of the highly-competitive market that exists.”

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