The Intermediary – September 2025 - Flipbook - Page 34
Q&A
Target Group
The Intermediary speaks with Melanie Spencer, growth
director at Target Group, about technology, evolution, and
complex buy-to-let
32
What’s driving the rise in limited
How is Target supporting lenders to
company BTL?
process complex cases?
The surge in landlords opting for limited
company structures is driven by tax efficiency,
portfolio scalability, and regulatory pressures.
Since the removal of mortgage interest relief
for individual landlords, incorporation offers a
more favourable tax position, particularly for
higher-rate taxpayers. Limited companies also
enable reinvestment of profits and smoother
succession planning.
With tailored mortgage products and
growing investor confidence, the trend appears
sustainable – especially among professional
landlords with long-term growth ambitions.
However, setup costs and higher mortgage rates
mean it’s not a one-size-fits-all solution.
The surge has reshaped the mortgage
landscape, presenting both opportunities and
challenges for lenders. While tax efficiencies
and regulatory advantages drive landlord
interest, lenders face increasing complexity in
underwriting and due diligence. Underwriting
now demands dual scrutiny – not just of the
company but also of its directors, often requiring
personal guarantees. Affordability assessments
shift toward rental income, but creditworthiness
of individuals remains crucial, especially for
newly formed special purpose vehicles (SPVs).
Due diligence is more intensive, involving
verification of company structures, SIC codes,
and tax implications. Cases with layered
ownership or offshore entities require enhanced
checks, adding time and risk.
Case complexity is rising, particularly with
portfolio landlords, multi-unit properties, and
intricate company hierarchies. Specialist lenders
and tailored underwriting are becoming essential
to manage risk and maintain service standards.
As limited company BTL continues to grow,
intermediaries play a vital role in guiding clients
through the evolving requirements and helping
lenders navigate this sophisticated market.
Target Group is addressing this head-on by
embedding automation and intelligent workflow
technology into the heart of mortgage servicing.
Our platform supports the full loan lifecycle
through configurable workflows and data-driven
servicing tools. This is especially valuable for
limited company BTL cases, which often involve
layered ownership structures and complex
financial arrangements.
By automating routine servicing tasks such as
payment processing, document management,
and arrears handling, Target enables lenders to
reduce operational costs, improve compliance,
and deliver a seamless customer experience.
Intelligent workflows guide servicing
teams through nuanced scenarios, ensuring
consistency and reducing training overhead. For
intermediaries, this means greater confidence
that their clients’ portfolios are being managed
with precision and care – especially when loans
become non-performing. With scalable servicing
solutions and embedded expertise, Target Group
is helping lenders stay ahead in a market that
demands both agility and depth.
As property portfolios grow in scale and
complexity, lenders face increasing challenges in
servicing landlords operating through multiple
limited companies or managing extensive
holdings. Target Group’s portfolio management
tools offer a robust solution, enabling lenders to
navigate this landscape with confidence.
Our scalable loan servicing platform supports
diverse ownership structures, while lifecycle
management ensures consistency from
origination to repayment. For landlords with
underperforming assets, our special servicing
capabilities provide tailored recovery strategies.
Advanced analytics help lenders assess risk
across varied portfolios, and our multi-product
software allows for customisation without
compromising efficiency. With white-label
The Intermediary | September 2025
