Independent Financial Life Planners Bishop's Stortford: Over charging Ltd companies

Friday, 22 January 2016

Over charging Ltd companies

Many in later life turn to property to support their retirement and Enable's IFA's in Bishop's Stortford know that diversification of your assets is always a good thing over time. Some have turned their letting investments into more of a business of late and there is some debate as to whether the market will stop lenders overcharging buy-to-let limited companies.

One specialist buy-to-let lender says some mainstream mortgage companies are over-charging borrowers who have become limited companies in order to minimise their liability as a result of Chancellor George Osborne’s tax changes. The commercial director of one loans company recently announced that its own Limited Company BTL mortgage would be priced at the same rate as the rest of its core range of mortgages. They say it would not be right to expect borrowers to stump up additional fees just because they have taken the up until-now more unusual step of incorporating to support being a landlord.

Simon Bayley says "certain lenders are charging up to £100 extra for this product over their core range, when the risk is no different. [They’re] effectively asking landlords to pay any tax saving from using a limited liability company structure to the lender instead” “The intermediary community is far too canny to go on selecting lenders who decide on this kind of pricing model. ... I am sure that market forces will dictate that this kind of overpricing will quickly disappear".

Source: Property Investor Today

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.