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Buy-to-let mortgage deals are out there for landlords who know where to look.
Data from property consultancy Pegasus Insights reveals one in five landlords own property through a company, with 7 percent placing all their portfolios in a company and 13 percent running a hybrid personal/corporate ownership business.
The research shows that incorporating a letting business is most popular with landlords owning four or more properties, with 33 percent of them - one in three - holding property this way.
Most landlords incorporate when adding property to their portfolios.
However, corporate landlords tend to have low awareness of specialist buy-to-let mortgage lenders.
Mark Long, a Pegasus Insight director, said: "Limited company ownership has moved from the fringes of the buy-to-let market to the mainstream.
"The incorporation model is especially attractive for portfolio landlords, who are typically higher-rate taxpayers and therefore more sensitive to tax changes.
"These landlords tend to be larger, more sophisticated operators, and critically, they are more likely to be active borrowers. That makes them a vital audience for lenders and brokers alike.
"At the same time, our research shows that awareness of the limited company mortgage market is still patchy. Many landlords don't have a clear picture of which lenders are active in this space or the range of products available."
According to buy-to-let mortgage monitor Moneyfacts, the current top 10 best deals listed for purchase or remortgage by corporate landlords are:
| Lender | Rate | Product | Max LTV | Fees |
|---|---|---|---|---|
| CHL Mortgages | 2.99% | Two-year fix | 55% | £150 booking fee + 7% arrangement fee |
| MT Finance | 2.99% | Two-year fix | 75% | £185 administration fee + 7% arrangement fee |
| Metro Bank | 3.49% | Two-year fix | 65% | 5% arrangement fee |
| Molo Finance | 3.68% | Two-year fix | 75% | £150 booking fee + 4.5% arrangement fee |
| Keystone | 4.69% | Five-year fix | 65% | £175 booking fee + 7% arrangement fee |
| Cumberland BS | 4.78% | Discount variable | 75% | £999 arrangement fee |
| Saffron BS | 4.87% | Five-year fix | 75% | £2,500 arrangement fee |
| The Mortgage Works | 5.09% | Two-year fix | 75% | £1,495 arrangement fee |
| Molo Finance | 5.24% | Five-year fix | 80% | £150 booking fee + 3% arrangement fee |
| Nottingham BS | 5.94% | Five-year fix | 80% | No fees |
| Source: Moneyfacts | ||||
Meanwhile, the current cheapest buy-to-let mortgage deals for individual landlords depend on the product and maximum loan-to-value (LTV) required:
| Product | Rate | APRC | Max LTV | Fees | Lender |
|---|---|---|---|---|---|
| Two-year fix | 2.44% | 8.80% | 65% | £200 booking +7% arrangement | Zephyr Loans |
| Three-year fix | 3.04% | 7.50% | 50% | 3% arrangement fee | BM Solutions |
| Five-year fix | 3.60% | 7.10% | 65% | 3% arrangement fee | BM Solutions |
| 60% LTV | 2.44% | 8.80% | 65% | £200 booking +7% arrangement | Zephyr Loans |
| 75% LTV | 2.68% | 6.80% | 75% | £150 booking + 6.5% arrangement | Molo Finance |
| 80% LTV | 2.78% | 6.90% | 80% | £150 booking + 6.5% arrangement | Molo Finance |
| Discount variable | 3.05% | 7.50% | 70% | £100 booking + 5% arrangement | The Stafford |
| Variable | 3.05% | 7.50% | 65% | £100 booking + 5% arrangement | The Stafford |
| Source: Moneyfacts | |||||