The Mortgage Works has launched new limited company mortgages with legal fees and a valuation included.

TMW, the specialist BTL arm of Nationwide Building Society, says the new rates at 75 per cent loan-to-value, which are available for remortgages, covers four products.

Its two-year fixed rate at 3.34 per cent with a £1,995 fee is included; its two-year fixed rate at 3.49 per cent with a £995 fee; its five-year fixed rate at 3.69 per cent with a £1,995 fee; and its five-year fixed rate at 3.84 per cent with a £995 fee.

Since 2016 the tax benefit of holding property in a company, rather than under personal names, allows landlords to offset 100 per cent of mortgage interest against profits. Those holding property in their own name can only offset 20 per cent.

TMW head Daniel Clinton says: “Over the last few years, we have seen more and more landlords build their portfolios through limited companies following changes to the tax regime.”

He adds: “As a leading buy-to-let mortgage provider, we always look to offer a range of competitive mortgages to suit whatever the landlord’s circumstances. These latest products reinforce our support for the limited company market, helping reduce upfront costs for landlords.”

The number of buy-to-let companies leapt to a record 228,743 in the UK, after the amount of these firms set up last year jumped by 23 per cent, according to data from Hamptons Monthly Lettings Index for December 2020 released last week.

A total of 41,700 new buy-to-let limited companies were set up last year.

Over the last four years, since these tax changes were introduced, more companies have been set up to hold buy-to-let properties than in the preceding 50 years combined, says Hamptons.