The Mortgage Works, a leading player in the buy-to-let (BTL) mortgage sector, has announced a significant relaxation of its lending criteria for incorporated landlords. This change is set to create more flexibility and opportunities for landlords who operate their rental businesses through limited companies.

The primary update involves allowing limited company buy-to-let purchase applications where the property in question is currently owned and occupied by one of the company’s directors. This adjustment aligns with the approaches often seen in let-to-buy transactions for standard BTL scenarios, making it easier for landlords to manage their properties within a corporate structure.

Availability of Existing Mortgage Products

In light of these changes, The Mortgage Works has confirmed that its existing range of limited company mortgage products will be available to these new applicants. This ensures that landlords transitioning to or starting with a corporate structure won’t miss out on the variety of mortgage options previously available only to individual landlords.

Joe Avarice, Senior Manager of BTL mortgages at The Mortgage Works, emphasised the company’s commitment to supporting landlords of all types. He noted that this recent update was largely driven by feedback from both landlords and brokers, indicating a responsive shift in policy to meet the evolving needs of the market.

Tony Field, the Sales and Operations Director at Dynamo, also expressed his approval of the changes. He highlighted how this policy update facilitates a new way for customers to acquire their residential homes under a limited company arrangement to use as BTL properties. Field suggests that this could be particularly beneficial for those entering the BTL market for the first time or existing landlords looking to grow their portfolios.

Implications for Landlords

This change by The Mortgage Works opens up a novel route for prospective and current landlords to streamline their property investments. By allowing the purchase of properties owned by company directors, it provides a structured pathway for landlords to potentially save on taxes and organise their property holdings more efficiently under a limited company umbrella.