Q3 2016 results of the Limited Company Buy to Let Index reveal that 63% of applications by landlords purchasing buy to let properties are being made using a limited company structure. This figure is up from just 21% before the changes to tax relief on mortgage interest were announced by George Osborne in July 2015.

This represents a sea-change in landlord behaviour and includes both new purchases and ‘transfers’, i.e. purchases made by landlords selling their personally owned property to their limited company.

In contrast, the number of remortgage applications made via a limited company has remained at a fairly similar level and isn’t expected to rise until those who have recently used a corporate vehicle to purchase property are free from early repayment charges.

In terms of market share, buy to let mortgage products available to limited companies now accounts for 16% of all products, up from 13% in the first half of the year. By number however, availability has remained stable at 195 (average) because the overall number of BTL products on the market dipped slightly.

The index also reveals the average rate of a buy to let mortgage fell to 3.3% at the end of September, down from 3.7% in June.