UK specialist bank and buy-to-let lender, Paragon, has announced that it has updated and refreshed its product range for portfolio and non-portfolio landlords.
According to the lender, highlights 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 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 landlords seeking finance for houses in multiple occupation (HMOs) and multi-unit blocks (MBUs).
All products are available to individual landlords, as well as those operating in limited companies and limited liability partnerships and include an interest coverage ratio (ICR) starting from 4.00%.
The 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 in 2018, reflecting the long-standing expertise that the business has in this specialised segment of the buy-to-let market.
John Heron, Director of Mortgages at Paragon said: “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 up-front costs associated with arranging finance, we aim to give landlords more flexibility to decide the best route forward for their business.”