tmbl_NeezamNeezam Romjon, Senior Mortgage Adviser at The Mortgage Broker LTD, offers his advice on a number of common questions and situations his clients face.

Q – “I am buying an investment property on a ‘buy to let’ – Should I buy this in my personal name or a Ltd company name due to all the tax changes?”

A: Very good question and the answer is not a straightforward one. First of all you need to take some tax advice from a tax specialist or an accountant as your current tax bracket could change and could make the difference in the answer provided. The new tax changes being implemented over the next 3 years are extremely harsh for landlords and careful consideration needs to be given on the ownership structure of the property. Thankfully we have seen a few more lenders now offering deals for Ltd company mortgages whereas in the past these were few and far between which meant that the lenders could put higher margins (thus higher rates) on these types of deals –  In recent weeks we have seen a lot of Ltd company mortgage rates reduce in line with standard buy to let rates which gives you, the investor, a lot more choice.

My advice… Get a quote for your new mortgage on both scenario’s (in your personal name and a Ltd company name) and then check with an accountant to confirm which route and ownership structure would be best suited for you.

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