The Mortgage Works has boosted its support for limited company landlords by removing the need for all mortgage applicants to be directors.

The lender now accepts applications where one applicant is only a shareholder, owning at least 20% of the shares in the company.

The Mortgage Works explains that the change follows demand from landlords and comes after it started to accept inter-company loans as a deposit option for buy-to-let mortgage applications from limited company landlords.

Damian Thompson, of The Mortgage Works, said: “This latest enhancement is another example of our continued commitment to the market. It’s also a perfect demonstration of how we continue to listen to and act on feedback we receive from both landlords and brokers.”

Limited company landlords

Limited company landlords continue to expand their presence in the buy-to-let sector as current tax rules mean that most new investors find themselves better off in a company structure.

Companies House now has more firms registered to hold buy-to-let property than for any other type of business as investors seek to reduce their tax burden, according to Hamptons.

It reports that since full mortgage interest tax relief began to be withdrawn in February 2016, the number of firms holding buy-to-let property has jumped by 332% to 401,744.

The increase was driven by a record 61,517 new limited companies being set up in 2024, a 23% increase on the previous year’s total.  

There are now 680,000 properties held in a limited company structure across England and Wales, with the number rising by an average of 70,000-100,000 every year.

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