As buy-to-let rules get tighter, landlords have been forming limited companies to try to cut tax bills. But a group of advisers is warning there might be trouble ahead.
A group of advisers has warned that limited company buy-to-let might be the next big mis-selling scandal to rock the mortgage industry.
The warning has been issued in the wake of research revealing that clients using limited companies to take out buy-to-let loans paid significantly more than personal borrowers.
The study, by mortgage broker Private Finance, showed the higher rates for limited company borrowing means some investors could see their income shrink by £1,000 a year compared to personal borrowers.