Finance News

Paragon Refreshes its Range for Portfolio and Non-Portfolio Landlords

Rose Jinks - January 9, 2019

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 non-portfolio landlords.

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.