The Intermediary –- May 2026 - Flipbook - Page 51
BUY-TO-LET
Opinion
AND THE NEXT PHASE
STRATEGY
deposit requirements can be a barrier,
particularly for newer entrants or
those restructuring existing assets
into a company. So, lending policy
becomes critical.
Darlington Building Society’s
decision to increase maximum
loan-to-value (LTV) to 80% across its
limited company buy-to-let range
reflects this need. For brokers, this
provides greater flexibility when
structuring cases, helping to balance
deposit size, affordability and longterm planning without pushing
clients into less suitable options.
Importantly, this is not just about
supporting established landlords.
The profile of borrowers entering
the limited company market is
broadening, and that includes firsttime landlords who are approaching
property with a clear strategy from
the outset.
Products that are accessible to these
clients, without restrictive income
requirements or ownership history,
will be key in supporting the next
phase of market activity.
Equally, the ability to lend on a
range of property types, including
holiday lets, adds further depth to
the opportunity for brokers working
with clients whose income or
investment approach does not fit a
standard mould.
This is where lender partnerships
become particularly important.
Brokers operating in this space need
lenders that take a wider view of risk,
recognising that not all strong cases
look the same on paper. That might
include borrowers
with international income, those
entering the market for the first time,
or landlords restructuring smaller
portfolios into a company.
A rigid approach can limit options
and slow transactions, whereas a
more flexible, case-led assessment
can support beer outcomes for both
broker and client.
A clear trajectory
The outlook for limited company BTL
is not defined solely by interest rates or
short-term market sentiment.
While the rate environment
remains challenging, it is only one
part of a broader picture. Structural
factors, including taxation, regulation
and the professionalisation of
landlord behaviour, are likely to
continue driving incorporation
and shaping demand for
incorporated mortgages.
The data from early 2026
suggests that momentum is
carrying forward, and there is
lile to indicate that this will
reverse in the near term.
For brokers, the opportunity
lies in recognising that this is a
market moving towards greater
complexity but also greater
maturity. Clients are asking
more detailed
questions, taking a
longer-term view,
and looking for
advice that reflects
both current
conditions and
future plans.
Limited company structures are
part of that conversation, not a
separate one, and those who are well
positioned to support it will be beer
placed to build lasting relationships in
a changing market.
In practical terms, that means
aligning with lenders who combine
sensible criteria with a willingness
to engage with individual cases,
investing time in understanding the
drivers behind borrower decisions,
and recognising that limited
company BTL is now a core part of
the advisory landscape.
As the sector adapts to regulatory
change and evolving economic
conditions, that approach will be
key to helping clients structure their
investments in a way that is both
resilient and fit for purpose. ●
May 2026 | The Intermediary
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