According to the data in October and November only 3% of its DIPs were on Limited Company products. In December that number had jumped to 28% and in January the percentage of new DIPS had reached 62%.
According to Commercial Director, Simon Bayley, the interest was not unexpected.
He said:
“Once the surprise at the Chancellor’s move on tax relief had been absorbed, it was only a matter of time before brokers and their clients were looking at the opportunity presented by this type of product. This is an area of the market that us and other lenders need to lead the way in providing robust alternatives to support the BTL community.
“I think we will see this become a significant tool for landlords depending on their circumstances. Purchases will be the main focus, but it remains to be seen about the take up of this product for those wishing to place existing portfolios into an SPV. Enterprising advisers will already be talking to existing landlord clients with portfolios to look at the implications of moving to a Limited Company structure. For landlords with more complex portfolios, those conversations will undoubtedly need to include other professional advisers such as accountants and solicitors.”
