Majority of brokers expect to write more limited company business in 2022

Some 96% of brokers expect to write more limited company business in 2022, revealed a webinar poll conducted by CHL Mortgages.

The responses emerged during a Lender Spotlight session held in conjunction with Knowledge Bank.

Further polls were taken during the webinar around limited company activity and the challenges being faced.

When asked how much limited company BTL business brokers are currently writing, 69% said they are writing one to five cases a month, while 25% stated they are not writing any.

Only 6% of respondents said they are writing in excess of five cases a month.

In terms of challenges that brokers face when placing limited company business, the top two cited were the lack of knowledge around limited companies (voted by 59% of respondents), and the structure and shareholding of limited companies (46%).

Other challenges listed include conveyancers (28%) and independent legal advice for shareholders (20%).

Ross Turrell, commercial director at CHL Mortgages, said: “Awareness around the benefits attached to limited company lending has risen greatly in recent times and 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. 

“In addition, it could be beneficial for intermediaries to connect with accountants, 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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