96% of brokers expect rise in limited company business next year

Around ninety-six per cent of brokers are expecting to write more limited company business in 2022, according to a new study from CHL Mortgages.

A webinar poll conducted by the specialist buy-to-let (BTL) lender, based on responses from over 100 brokers, suggested that just 4% thought they would write less.

When asked how much limited company BTL business brokers are currently writing, 69% of respondents said they are writing one to five cases a month, a quarter (25%) said they are writing no limited company business, while 6% revealed they are writing in excess of five cases a month.

Focusing on the challenges facing brokers when placing limited company business, CHL’s research also found that 59% of brokers had cited a lack of knowledge around limited companies, 46% said structure and shareholding, 28% highlighted conveyancers, while 20% pointed to independent legal advice for shareholders as being a challenge.

CHL commercial director, Ross Turrell, suggested that awareness around the benefits attached to limited company lending has “risen greatly” in recent times.

“It’s important for brokers to realise that lenders are always on hand to help them and their clients overcome a host of challenges and provide solutions to meet this growing demand,” Turrell added.

“In addition, it could be beneficial for intermediaries to connect with accountants and tax advisers and solicitors as they can offer real expertise on things such as limited company set ups, tax positions and property structures, particularly regarding leasehold issues.

“From a CHL perspective, we are certainly seeing heightened interest from intermediaries and landlords when it comes to utilising limited company options and borrowing facilities. This is reflected in the overwhelming majority of brokers who expect to write more limited company business over the next 12 months and this is certainly an area which will remain of primary importance for us as a business moving forward.”

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