blog mortgage118

Author: David Sampson

  • Majority of Landlords Plan to Refinance This Year

    Majority of Landlords Plan to Refinance This Year

    Research from specialist lender Together reveals that a significant 76% of UK landlords are planning to refinance their property portfolios within the next year. This trend indicates a strong desire among landlords to secure funds for new investments, showcasing the resilience of the buy-to-let sector.

    TL;DR: 76% of landlords are likely to refinance their properties this year; this reflects confidence in the buy-to-let market and a push for new investments.

    Why Are Landlords Choosing to Refinance?

    With 36% of landlords stating they are “very likely” to refinance, and an additional 40% “somewhat likely,” the motivation appears to stem from the need to access capital for further investments. This trend is particularly notable as landlords look to diversify or expand their portfolios amid changing market conditions.

    How Has the Market Shifted?

    Since 2020, there has been a noticeable shift in the geographical distribution of buy-to-let lending. The North West has seen an increase of 3.3 percentage points in Together’s lending, while Scotland and Yorkshire and the Humber have also experienced growth. In contrast, Greater London and the South East have seen a decline, dropping from 23.6% to 20% of Together’s buy-to-let lending. This shift suggests a changing market in investment hotspots across the UK.

    What This Means for Landlords

    The increasing inclination to refinance indicates a robust sentiment among landlords regarding future investments. For those looking to expand their portfolios, this could be an opportune time to explore current mortgage rates and assess refinancing options. As the market evolves, landlords should remain vigilant about regional trends and adjust their strategies accordingly.

    Frequently asked questions

    What factors are driving landlords to refinance?

    Landlords are primarily motivated by the need for capital to invest in new properties or improve existing ones, reflecting confidence in the buy-to-let sector.

    How has buy-to-let lending changed in recent years?

    There has been a geographic shift, with increased lending in the North West and Scotland, while Greater London and the South East have seen declines in their share of lending.

  • Santander Sees Rise in Mortgage Lending in the Market

    Santander Sees Rise in Mortgage Lending in the Market

    Santander has reported a significant increase in its gross mortgage lending, reaching a notable figure. This growth is primarily attributed to the bank’s recent acquisition of TSB, which has expanded its loan book considerably. For borrowers and investors, this development signals a competitive mortgage market with potential opportunities for both new and existing clients.

    TL;DR: Santander’s gross mortgage lending rose significantly, bolstered by its acquisition of TSB; borrowers may find more competitive options in the evolving mortgage market.

    What does the rise in Santander’s mortgage lending mean?

    The increase in Santander’s gross mortgage lending indicates a robust demand for mortgages in the UK. The bank’s loan book expanded largely due to the integration of TSB. This acquisition not only enhances Santander’s market position but also reflects a trend of consolidation in the banking sector, which could lead to more competitive offerings for borrowers.

    How has the borrower profile changed?

    In terms of borrower demographics, Santander’s mix has shown some shifts. Homemovers now represent a significant portion of its business, while remortgagors have increased their share. First-time buyers have seen a decrease, indicating a potential challenge in affordability for new entrants to the housing market. Meanwhile, buy-to-let lending has remained stable, suggesting that landlords are continuing to invest despite market fluctuations.

    What this means for the mortgage market

    For borrowers, the current mortgage market presents a mix of opportunities and challenges. With a large percentage of Santander’s mortgage borrowers on fixed-rate deals, the slight increase in standard variable rate borrowers may prompt some to consider locking in fixed rates before potential further rate hikes. Additionally, the average loan-to-value ratio has increased, indicating that lenders may be willing to offer higher loans relative to property values. Investors, particularly in the buy-to-let sector, should keep an eye on how these changes affect rental yields and property values.

    What are the implications of Santander’s financial performance?

    Despite the rise in mortgage lending, Santander reported a decline in half-year pre-tax profits. This decrease is attributed to an impairment charge related to historical motor finance commission payments and increased restructuring costs following the TSB acquisition. The bank’s net interest income has risen, driven by TSB’s higher net interest margin, although the overall net interest margin has slightly decreased. This financial performance may influence future lending strategies and interest rates, which borrowers should monitor closely.

    Frequently asked questions

    What should first-time buyers consider in this market?

    First-time buyers should assess their affordability given the slight decrease in their representation among borrowers. With rising loan-to-value ratios, it may be beneficial to explore current mortgage rates to secure lower monthly payments.

    How can landlords navigate the current mortgage market?

    Landlords should remain informed about stable buy-to-let lending rates and consider the implications of changing interest rates on their investments. Monitoring market trends will help in making informed decisions about property acquisitions or refinancing.

  • Understanding Limited Companies in the Mortgage Market

    Understanding Limited Companies in the Mortgage Market

    Recent trends indicate that not every landlord needs to establish a limited company to manage their rental properties. This development is particularly relevant as the mortgage market continues to evolve, reflecting changes in tax regulations and financial strategies for landlords.

    TL;DR: In 2025, a significant percentage of mortgaged buy-to-let purchases were made through limited companies; this trend highlights the growing appeal of corporate structures for landlords facing rising tax burdens.

    Why Are More Landlords Choosing Limited Companies?

    According to Hamptons, there were many new companies formed to hold rental properties in 2025, representing an increase from the previous year. By the end of 2025, there were a substantial number of active limited companies across the UK, nearly five times the number recorded in 2016. This surge can be attributed to the tax implications of owning property personally versus through a company.

    Landlords who own properties personally can only claim a basic-rate tax credit on their finance costs, while limited companies can deduct their interest expenses before paying corporation tax. The corporation tax rate is generally more favourable than the income tax rates that can reach much higher levels for high earners.

    What Are the Financial Implications for Landlords in the Mortgage Market?

    As the tax market shifts, the financial strain on landlords is becoming more pronounced. For example, had personal allowances kept pace with inflation since being frozen, the personal allowance would be significantly higher, and the higher-rate tax threshold would start at a much greater amount. This freeze effectively pulls more landlords into the higher tax brackets each year.

    Findings show that a notable percentage of buy-to-let purchases in 2025 were conducted through limited companies, a significant rise from previous years. The increasing appeal of limited companies can be attributed to the tax benefits they offer, especially as landlords face tighter financial situations due to rising tax rates.

    What Should Landlords Consider Before Transitioning to a Limited Company?

    While the corporate route may seem attractive, landlords must consider the implications of transferring properties into a limited company. This process is treated as both a disposal and a purchase, triggering capital gains tax upon exit and stamp duty land tax upon entry. For instance, a landlord who purchased a property many years ago could face significant tax liabilities if they decide to transfer it into a limited company.

    Additionally, the recent increase in dividend tax rates further complicates the financial market. These changes mean that landlords taxed on property profits before finance costs and only receiving a basic-rate finance-cost credit are likely to find their financial positions becoming increasingly strained.

    What This Means for Landlords and Investors in the Mortgage Market

    For landlords, the decision to operate through a limited company versus personally is becoming more critical as tax burdens shift. The changes in tax rates and the increasing number of landlords opting for corporate structures suggest that those who own properties personally may want to reassess their strategies. The upcoming changes in property income tax rates will further alter the market, with finance cost relief being adjusted, which may influence more landlords to consider the limited company route.

    Landlords should stay informed about these changes and consult with financial advisors to determine the best course of action for their individual circumstances. As the mortgage market continues to evolve, understanding these dynamics will be important for maintaining profitability and compliance. For more information on current mortgage rates, landlords can stay updated on how these changes affect their financial strategies.

    Frequently Asked Questions

    What are the benefits of using a limited company for buy-to-let properties?

    Using a limited company allows landlords to deduct finance costs before paying corporation tax, which can be more advantageous than personal income tax rates, especially for higher earners.

    What are the tax implications of transferring a property into a limited company?

    Transferring a property into a limited company is treated as a disposal and a purchase, triggering capital gains tax and stamp duty land tax, which can lead to significant costs for landlords.

  • Record Surge in Company Landlords: What It Means

    Record Surge in Company Landlords: What It Means

    The number of company landlords in the UK has surged, with nearly 14,000 new landlord businesses registered in just the first five months of this year. This trend follows a record high of 34,128 new buy-to-let businesses registered last year, marking a significant increase of nearly 70% compared to the five-year average. The rapid growth in company registrations highlights a shift in the property investment market, affecting landlords and investors alike.

    TL;DR: Nearly 14,000 new landlord businesses were registered in early 2026; this reflects a dramatic increase in buy-to-let company formations, impacting both current and prospective landlords.

    Why Are More Companies Registering as Landlords?

    The rise in company landlords can be traced back to several factors, including tax advantages and regulatory changes. The introduction of a 3% stamp duty surcharge on additional properties in April 2016 led to a spike in incorporations, with registrations increasing by nearly 59% in the following two years. This trend has continued, with the 2020s already accounting for more new landlord businesses than the entire period from 2000 to 2019.

    What Regions Are Seeing the Most Growth?

    While London remains the largest market for new landlord businesses, the regional distribution is changing. The devolved nations have experienced significant growth, with Scotland’s annual registrations tripling since 2020, reflecting a 171% increase. Northern Ireland and Wales have also seen substantial growth, with increases of 148% and 144%, respectively. This shift indicates a more diverse property investment market across the UK.

    What This Means for Landlords and Investors

    The acceleration in company landlord registrations signals a robust interest in the buy-to-let market, which can influence mortgage rates and investment strategies. For existing landlords, this could mean increased competition and potentially higher property values in certain regions. Prospective investors may find opportunities in areas experiencing rapid growth, such as Scotland, where over 2,100 new landlord companies are now being registered annually, up from fewer than 400 in 2015.

    Frequently Asked Questions

    How does the rise in company landlords affect individual landlords?

    The increase in company landlords could lead to heightened competition in the buy-to-let market, potentially affecting rental yields and property values. Individual landlords may need to adapt their strategies to remain competitive.

    What should new investors consider before entering the market?

    New investors should evaluate the regional markets carefully, considering areas with significant growth in company registrations. Understanding the implications of tax regulations and market dynamics is important for making informed investment decisions.

  • Record £108m Property Finance in the Mortgage Market

    Record £108m Property Finance in the Mortgage Market

    Word On The Street has achieved a remarkable milestone by arranging £108 million in property finance over the past year, marking a significant shift in the UK mortgage market. This achievement highlights the resilience of the sector amidst various challenges, showcasing an increasing appetite for property investment.

    TL;DR: Word On The Street arranged a record £108m in property finance, reflecting a 62% annual growth; this surge benefits landlords and investors seeking new opportunities.

    What factors contributed to this growth in the mortgage market?

    The impressive 62% annual growth in property finance can be attributed to a combination of factors. Word On The Street facilitated 239 cases, a 130% increase year-on-year, indicating a robust demand for various types of property financing. The firm reported a 75% rise in total revenue, reaching £1.8 million, demonstrating strong operational performance despite external market pressures.

    How does this impact landlords and investors in the mortgage market?

    The surge in property finance cases, including 130 buy-to-let (BTL) loans, 82 bridging loans, 16 development finance, and 11 commercial mortgage cases, presents significant opportunities for landlords and investors. With an average loan size of £462,637, the increased availability of finance allows for greater investment in rental properties and development projects. This trend may lead to more competitive rental markets, as landlords expand their portfolios.

    What should brokers and borrowers watch next in the mortgage market?

    Brokers and borrowers should closely monitor the evolving dynamics of the mortgage market as lenders respond to this increased demand. The continued growth in property finance suggests that lenders may introduce more competitive rates and flexible terms. Staying informed about current mortgage rates and financing options will be important for those looking to capitalise on new opportunities.

    Frequently asked questions

    What types of loans were arranged by Word On The Street?

    Word On The Street arranged a variety of loans, including 130 buy-to-let loans, 82 bridging loans, 16 development finance loans, and 11 commercial mortgages.

    How much was the average loan size?

    The average loan size for the cases arranged was £462,637, reflecting the scale of investments being made in the property market.

  • Limited Companies and the UK Mortgage Market Explained

    Limited Companies and the UK Mortgage Market Explained

    Recent trends indicate that not all landlords in the UK need to establish a limited company to manage their properties, a significant consideration in the evolving mortgage market. As tax regulations tighten, landlords must evaluate their options carefully to ensure financial viability.

    TL;DR: In 2025, a substantial percentage of buy-to-let purchases were made through limited companies, reflecting a growing trend among landlords; however, not every landlord may benefit from this structure.

    Why Are More Landlords Choosing Limited Companies in the Mortgage Market?

    In 2025, Hamptons reported a significant increase in the number of new companies formed to hold rental properties, marking a notable rise compared to the previous year. By the end of 2025, there were many active limited companies in the UK, nearly five times the number recorded in 2016. This surge is largely attributed to the tax implications of owning property personally versus through a company.

    Landlords who own properties personally can only claim a basic-rate tax credit on their finance costs, while companies can deduct these costs before paying corporation tax. The corporation tax rate for small profits is currently lower than the rates applicable to personal income, which can significantly affect a landlord’s net income, making the corporate route increasingly appealing.

    What Are the Tax Implications for Landlords in the Mortgage Market?

    Recent changes in tax allowances have further complicated the market for landlords. Had allowances kept pace with inflation since being frozen in April 2021, the personal allowance would now be higher than it currently is. Similarly, the threshold for higher-rate tax would have risen significantly. The freeze on these allowances is pushing more landlords into the higher tax band, making the corporate structure more attractive.

    According to Paragon Bank, the percentage of mortgaged buy-to-let purchases made through limited companies rose notably in 2025 compared to previous years. This trend suggests that more landlords are recognising the potential tax benefits of operating through a limited company.

    What Challenges Do Landlords Face When Transferring to a Limited Company?

    While the corporate route offers tax advantages, landlords must also navigate the challenges associated with transferring properties into a limited company. This process is treated as both a disposal and a purchase, which can trigger capital gains tax liabilities and stamp duty land tax (SDLT) charges. In England and Northern Ireland, additional residential purchases now incur a higher-rate surcharge, which can significantly increase costs.

    For example, a landlord who purchased a property two decades ago may face substantial taxes if they decide to transfer this property into a limited company. Furthermore, recent increases in dividend tax rates add another layer of financial pressure. The ordinary rate has risen, impacting landlords taxed on property profit before finance costs.

    What This Means for Landlords and Investors in the Mortgage Market

    Landlords must carefully consider their financial situations and future plans when deciding whether to operate as a limited company. The tightening of tax relief and the increasing burden of personal taxation are compelling many to explore this option. However, the costs associated with transferring properties into a limited company can be prohibitive, particularly for those with long-held investments.

    As property income tax rates are set to change in the near future, moving to a limited company may become a more pressing consideration. This shift could further incentivise landlords to reassess their ownership structures.

    Frequently asked questions

    Do all landlords need to set up a limited company?

    No, not all landlords need to set up a limited company. The decision depends on individual financial circumstances, tax implications, and long-term investment strategies.

    What are the tax benefits of owning property through a limited company?

    Owning property through a limited company allows landlords to deduct finance costs before paying corporation tax, which can be more beneficial than the limited tax relief available to individual landlords.

  • Record Growth in Company Landlords: What You Need to Know

    Record Growth in Company Landlords: What You Need to Know

    The number of company landlords in the UK has surged, with nearly 14,000 new landlord businesses registered in just the first five months of 2026. This trend signifies a growing shift in the property market, as more individuals opt for company structures to manage their buy-to-let investments.

    TL;DR: Almost 14,000 new landlord businesses were registered in early 2026; this trend indicates a significant shift towards company structures for buy-to-let investments.

    Why Are More Landlords Choosing Company Structures?

    The dramatic increase in company landlords can be traced back to several factors, including tax benefits and regulatory changes. Since the introduction of the 3% stamp duty surcharge on additional properties in April 2016, many investors have opted to incorporate their buy-to-let ventures. This has resulted in a 59% rise in new registrations over the following two years, highlighting a clear trend towards the company model.

    How Does This Growth Compare to Previous Years?

    Last year alone saw a record 34,128 new buy-to-let businesses registered, which was nearly 70% higher than the five-year average of 23,549. The growth trajectory is staggering, with the number of registered buy-to-let companies skyrocketing by 1,700% since 2000. The 2020s have already seen more new landlord businesses registered than the entire period from 2000 to 2019, indicating a significant shift in the market.

    What Does This Mean for Current and Prospective Landlords?

    For existing landlords, the rise in company registrations may present both challenges and opportunities. Those considering entering the market may find it increasingly advantageous to register as a company to benefit from potential tax efficiencies. Additionally, the shifting market suggests that competition may intensify, particularly in regions outside London, where growth rates are rapidly increasing.

    Which Regions Are Seeing the Most Growth?

    While London remains the largest market for company landlords, the regional dynamics are changing. Scotland has experienced a remarkable 171% increase in annual registrations since 2020, now recording over 2,100 new landlord companies each year. Northern Ireland and Wales are also witnessing significant growth, with increases of 148% and 144%, respectively. This shift indicates that opportunities for landlords are expanding beyond traditional hotspots.

    Frequently asked questions

    What are the benefits of becoming a company landlord?

    Becoming a company landlord can offer tax advantages, such as lower corporation tax rates and the ability to deduct expenses more effectively. This structure can also provide limited liability protection.

    How can I register as a company landlord?

    To register as a company landlord, you will need to incorporate a business through Companies House, which involves choosing a company name, preparing necessary documentation, and paying a registration fee.

  • Record High for Company Landlords in the UK

    Record High for Company Landlords in the UK

    The number of company landlords in the UK has surged, with nearly 14,000 new landlord businesses registered in just the first five months of this year. This trend highlights a significant shift in the buy-to-let market, which has seen unprecedented growth in recent years, particularly following regulatory changes.

    TL;DR: Nearly 14,000 new landlord companies were registered in early 2026; this marks a record pace of growth in the buy-to-let sector, impacting landlords and investors alike.

    What Factors Are Driving This Surge?

    Analysis from Companies House reveals that the number of new buy-to-let business registrations hit a record high last year, representing a substantial increase compared to the five-year average. This growth has been particularly pronounced since the year 2000, with registrations soaring significantly. The 2020s alone have seen more new landlord businesses registered than the entire period from 2000 to 2019.

    How Are Different Regions Affected?

    While London remains the largest market for buy-to-let registrations, accounting for nearly a third of all new companies since 2000, growth is increasingly evident in other regions. Scotland has seen a remarkable increase in annual registrations since 2020, now exceeding 2,100 new landlord companies per year. Northern Ireland and Wales have also experienced significant growth, with notable increases in registrations.

    What This Means for Landlords and Investors

    The rapid increase in company landlords suggests a shift in how property investors are structuring their investments. The introduction of the 3% stamp duty surcharge on additional properties in April 2016 has encouraged many to incorporate their buy-to-let businesses, leading to a jump in registrations in the subsequent years. For current and prospective landlords, this trend may offer strategic advantages, including potential tax benefits and limited liability, making it an appealing option for property investment.

    Frequently Asked Questions

    Why are more landlords choosing to register as companies?

    Many landlords are opting to register as companies to take advantage of tax efficiencies, limited liability, and to better manage their property portfolios amidst changing regulations.

    What should new landlords consider when starting a company?

    New landlords should evaluate the costs and benefits of incorporation, including potential tax implications, legal responsibilities, and the impact of recent market trends on their investment strategy.

  • Limited Companies and the Mortgage Market: What Landlords Need to Know

    Limited Companies and the Mortgage Market: What Landlords Need to Know

    Recent trends indicate that not all landlords need to establish a limited company to manage their properties effectively. As the mortgage market evolves, understanding the implications of ownership structures is important for landlords navigating financial challenges.

    TL;DR: A significant percentage of buy-to-let purchases are made through limited companies; this shift highlights the growing appeal of corporate ownership among landlords facing rising tax burdens.

    Why Are More Landlords Choosing Limited Companies?

    Hamptons reported a notable increase in the number of companies set up to hold rental properties. The trend is largely driven by changes in tax regulations affecting personal ownership of rental properties.

    What Are the Tax Implications for Landlords in the Mortgage Market?

    Landlords who own properties personally face limitations on tax relief for mortgage interest. Personal ownership allows only a basic-rate tax credit on finance costs. In contrast, limited companies can deduct mortgage interest before paying corporation tax. This disparity makes the corporate route increasingly attractive, especially for landlords with higher incomes who may be subject to higher income tax rates.

    How Do Recent Changes Affect Property Transfers?

    Transferring a property from personal ownership to a limited company is treated as both a disposal and a purchase, triggering capital gains tax liabilities and stamp duty land tax (SDLT) charges. The SDLT for additional properties now includes a surcharge for company purchases, adding to the financial burden of such transfers.

    What This Means for Landlords and Investors in the Mortgage Market

    The increasing number of landlords opting for limited companies indicates a shift in strategy to mitigate tax liabilities. A significant percentage of mortgaged buy-to-let purchases are made through limited companies, highlighting the need for landlords to evaluate their ownership structures carefully. The freeze on personal tax allowances has further complicated matters, pushing more landlords into higher tax brackets. As a result, the corporate route may provide a more favorable financial outlook for many property owners.

    Frequently Asked Questions

    What are the benefits of owning rental properties through a limited company?

    Owning rental properties through a limited company allows landlords to fully deduct mortgage interest from taxable profits, potentially resulting in lower overall tax liabilities compared to personal ownership.

    What should landlords consider before transferring properties to a limited company?

    Landlords should be aware of the capital gains tax and stamp duty implications of transferring properties to a limited company, as these can significantly impact the financial viability of such a move.

  • Record £108m Property Finance in the UK Mortgage Market

    Record £108m Property Finance in the UK Mortgage Market

    Word On The Street has achieved a remarkable milestone by arranging a record £108 million in property finance over the past year. This significant growth highlights the resilience of the UK mortgage market amid various challenges, making it an important development for landlords, borrowers, and investors alike.

    TL;DR: Word On The Street arranged a record £108 million in property finance, reflecting a 62% annual growth; this surge impacts landlords and investors seeking financing options.

    How Did Word On The Street Achieve This Growth?

    The firm reported a 130% year-on-year increase in the number of cases facilitated, completing a total of 239 transactions. This included 130 buy-to-let (BTL) cases, 82 bridging loans, 16 development finance cases, and 11 commercial mortgages. The average loan size reached £462,637, showcasing the firm’s ability to cater to a diverse range of financing needs.

    What Does This Mean for the Mortgage Market?

    The substantial growth in property finance arranged by Word On The Street is indicative of a robust demand for mortgage products, particularly in the buy-to-let sector. For landlords, this means more accessible financing options as lenders become increasingly willing to support property investments. Additionally, the 75% jump in total revenue to £1.8 million signals a healthy market environment, which could encourage further investment in property.

    What Trends Should Borrowers Watch in the Mortgage Market?

    As the mortgage market continues to evolve, borrowers should keep an eye on the increasing competition among lenders, which may lead to more favourable mortgage rates. With the current trend of rising property finance arrangements, it’s essential for potential borrowers to stay informed about current mortgage rates and explore mortgage rate comparison tools to find the best deals available.

    Frequently asked questions

    What types of cases did Word On The Street finance?

    Word On The Street financed a range of cases, including 130 buy-to-let, 82 bridging loans, 16 development finance, and 11 commercial mortgage cases.

    How has the mortgage market responded to recent challenges?

    The mortgage market has shown resilience, with firms like Word On The Street reporting significant growth in both the value and number of cases facilitated, indicating strong demand for property finance.