Paragon has launched an extended range of portfolio and non-portfolio buy-to-let mortgage products for the New Year, and removed the requirement of a floating charge on all applications from limited companies incorporated solely for the activity of holding and letting residential properties. Landbay is also extending its lending criteria.
Portfolio products
Among the new portfolio buy-to-let products is a two-year fixed rate at 3.49% for borrowing up to 80% loan-to-value (LTV) on SSC units, and a two-year fix at 3.69% for borrowing up to 80% LTV on HMO/MUB properties.
Four new portfolio switch products in Paragon’s buy-to-let range include a two-year fix at 3.99% up to 80% LTV on SSC units.
The lender’s new non-portfolio further advance buy-to-let products include a two-year fix at 3.55% and a five-year fix at 3.90%, both for borrowing up to 80% LTV on SSC units.
The removal of the requirement for a floating charge on limited company applications will improve service delivery and make applying to Paragon easier for buy-to-let mortgage intermediaries and customers.
This is the latest in a recent succession of key developments from Paragon, following the launch of a new CaseTracker app, and the removal of valuation and admin fees on all portfolio products.
Extended Range of Buy-to-Let Mortgage Products Available
CaseTracker is available to download from the Apple App Store.
John Heron, the Managing Director of Mortgages at Paragon, says: “Paragon has always been known for its specialist lending capability and particularly its focus on professional landlords. These new competitive products for portfolio landlords underline this approach and are supported by ongoing developments in our lending policy and service delivery.
“For us, it’s all about offering choice and making the portfolio application process as straightforward as possible. This extended range of products, along with the removal of floating charges, valuation and admin fees, and the ability to manage everything online or through the CaseTracker app does just that.”
First time landlords
Another specialist buy-to-let lender, Landbay, is also extending its lending criteria to now include first time landlords who do not currently own a residential property.
First time buyers will now be able to apply for a buy-to-let mortgage from Landbay if they are employed and earning a minimum income of £85,000. Landbay will be amongst the limited few to lend to aspiring landlords, designed to help professional people who are renting invest in property themselves and get onto the housing ladder.
Lending is available through Landbay’s approved distributor partners.
Paul Brett, the Managing Director of Intermediaries at Landbay, comments on the announcement: “Landbay is a responsible yet flexible, forward thinking lender and we’re constantly looking at new ways to open up access to aspiring landlords. The introduction of buy-to-let mortgages for first time buyers will now give people in a higher income bracket an opportunity to purchase a property and rent it out as a credible investment.
“We are constantly listening to our intermediary partners and to the requirements of the market. The last few years have been something of a policy rollercoaster for the buy-to-let market, causing some smaller landlords to exit the market altogether. However, ultimately, tenant demand shows no sign of letting up, and new landlords are continuing to enter the market despite the more punitive tax regime. It’s essential therefore that we help to support a well-served market.”
