Paragon, a specialist bank and buy-to-let mortgage lender, is
ringing in the New Year with a refreshed range of products for portfolio and
Highlights of the new range include five-year fixed rate
mortgages for portfolio landlords, at up to 75% loan-to-value (LTV), with no
product fee, no application fee, a free mortgage valuation and £250 cashback. Portfolio
landlords are defined as those with four or more mortgaged properties.
The new five-year mortgage products include an initial
interest rate of 3.80% for portfolio landlords looking to purchase or
remortgage single, self-contained units (SSCs), and 3.90% for those seeking
finance for Houses in Multiple Occupation (HMOs) and multi-unit blocks (MUBs).
All products are available to individual landlords, as well
as those operating through limited companies and limited liability partnerships,
and include an interest coverage ratio (ICR) starting from 4.00%.
The Prudential Regulation Authority (PRA) first introduced minimum
underwriting standards for portfolio landlords in October 2017, and, since
then, Paragon has seen an increasing proportion of its new business come from
landlords with larger and more complex property portfolios.
Complex completions increased from 65% to 79% of new
business at Paragon last year, reflecting the expertise that the company has in
this segment of the buy-to-let market.
John Heron, the Director of Mortgages at Paragon, says: “The cost certainty that a longer-term fix provides
will be an appealing prospect to many as the Brexit process continues into 2019
and landlord taxation takes the next step up.
“By adding products into
our range that remove many of the upfront costs associated with arranging
finance, we aim to give landlords more flexibility to decide the best route
forward for their business.”
Landlords, are you
enticed by this refreshed range to purchase more buy-to-let properties, or even
to remortgage your current portfolio? A fixed rate deal may be a wise option in
such uncertain political times.