Posts with tag: paragon mortgages

Paragon moves to tighten rules to meet PRA requirements

Published On: July 13, 2017 at 11:48 am

Tags: brokers,Buy-to-Let,landlords,paragon mortgages

Paragon has become the most recent lender to announce that it has changed tact to fall in line with the Bank of England’s Prudential Regulation Authority underwriting standards.

These relate to portfolio landlord with four or more managed properties.

Standards

All buy-to-let lenders must implement these new standards by September 30^th. Paragon has moved to act more quickly and will implement their changes from next Monday, the July 17^th.

The lender says its decision to implement the changes ahead of the PRA deadline reflects the fact that these new standards require just minimal alterations from its existing approach.

From Monday, brokers will route all applications from portfolio landlords with four or more mortgaged properties exclusively through Paragon Mortgages.

Paragon’s Mortgage Trust service meanwhile will focus on applications from individual landlords with three or less single mortgaged properties.

Paragon moves to tighten rules to meet PRA requirements

Performance

The firm request that all applications are received with a comprehensive property schedule and seek more documentation as necessary. This is in order to understand each investors’ business and can include an asset and liability statement, cashflow details and a business plan for the future.

John Heron, managing director of Paragon Mortgages, said: ‘We’ve always asked for information on all the properties a landlord holds and on the full range of their economic activity so that we can assess their business in the round and consider the impact of the new lending on their performance.’ {1)

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/7/another-lender-tightens-rules-for-investors-with-four-or-more-buy-to-lets

BTL lending at Paragon up 80% in Q4 of 2015

Published On: January 28, 2016 at 10:24 am

Author: Em Morley

Categories: Finance News

Tags: Buy-to-Let,buy-to-let landlords,landlords,paragon mortgages

New figures released by Paragon Mortgages suggests that investors are looking to purchase property before the tax changes in April.

The lender said in the final quarter of 2015, its lending to buy-to-let landlords nearly doubled. Mortgages for rental accommodation reached £401m, a rise of 80.6% on the same period in 2014.

What’s more, Paragon’s pipeline of future loans rose by 43% to hit £595.7m.

Profitable

This fantastic quarterly performance was a key feature in Paragon Group making a profit of £35.2m during the period. This was a rise of 14% on the year before.

John Heron, Director of Mortgages at Paragon, said, ‘our buy-to-let business has continued to grow and perform exceptionally well. Whilst over time recent policy developments may cause some softening in the rate of growth of buy-to-let at a market level, demand for private rented housing continues to remain strong and all indications suggest this is only likely to increase in the coming years.’[1]

BTL lending at Paragon up 80% in Q4 of 2015

Sensible

Despite the sudden surge in lending during Q4 of 2015, experts believe that Paragon’s buy-to-let growth will slow at a similar rate. However, Justin Bates, analyst at Liberum, believes the lender has not taken unhealthy risks to aid its quick expansion.

‘I’ve always considered Paragon to be a cautious, sensible lender at that is borne out in the credit quality statistics which are way ahead of industry averages,’ he noted. [2]

‘We see comments on the eye-catching growth rate of 80%, but that is not all new lending on new properties-around 60% of Paragon’s lending is remortgaging activity,’ Bates added.[2]

[1] http://www.propertyreporter.co.uk/landlords/btl-lending-up-80-according-to-paragon.html

[2] http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12125251/Paragon-Bank-booms-with-80pc-growth-in-buy-to-let.html

Paragon report high profit increase

Published On: July 31, 2015 at 10:47 am

Author: Em Morley

Categories: Finance News

Tags: paragon mortgages,property completions,property market

The Paragon Group of Companies, parent firm to Paragon Mortgages, has today announced its financial results for the second quarter of 2015.

Profits

Encouragingly, the groups total operating profits amounted to £98m in the nine months to 30^th June 2015, an 11% increase on the same period last year. In addition, Paragon Mortgages record completions totalling £370.3m in the quarter, representing a 98% increase on the same quarter last year. In the year as a whole, buy-to-let finishes totalled 816.5m.[1]

New business secured stood at a cumulative total of £864.9m at the end of the quarter, in comparison to £352.7m at the same time in 2014.

Paying dividends

Managing director of Paragon Mortgages, John Heron, commented, ‘we have seen a substantial increase in market share over the last year as our strategy to diversify funding has started to pay dividends.’ Heron said this was the case,’ against a background of strong and sustained tenant demand in a private rented sector that has doubled in scale in the last ten years and now accounts for 4.9m homes.’[1]

Paragon report high profit increase

‘Buy-to-let plays an important role in supporting the sector and making sure the market can respond to this continued increase in demand for rented homes, ‘Heron added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/paragons-buy-to-let-business-doubles

New Three-Year Fixed Rate Deals from Paragon

Published On: July 7, 2015 at 11:40 am

Author: Em Morley

Categories: Finance News

Tags: BTL mortgage rates,buy to let mortgages,fixed rate BTL mortgages,paragon mortgages

New Three-Year Fixed Rate Deals from Paragon

Specialist lender, Paragon Mortgages, has announced today that it is launching a selection of three-year fixed rate products and is updating all other deals in its range, which are designed for professional landlords.

The new three-year fixed rates are available at up to 75% loan-to-value (LTV) at 3.99% for single, self-contained properties and 4.45% for HMOs and multi-unit blocks. Both have a 2% product fee.

The new three-year fixes have been created to supplement the existing range of two and five-year fixed rate deals. These have been re-dated to 30^th September 2017 and 2020 respectively. On two-year products, rates start at 3.75% and are from 4.6% on five-year fixes.

Director of Paragon Mortgages, John Heron, says: “Our new range of three-year fixed rate products are very competitive and designed to meet the needs of more experienced landlords with larger property portfolios.

“The new range, along with our fixed rates for two and five years, best suit landlords looking to plan financially for the slightly longer term. Our latest intermediary trends survey shows that landlord clients are still preferring to fix and the growth in popularity of five-year fixes remains.

“Our range now includes 14 competitive and tailored fixed rate products in addition to the tracker rates available for a variety of terms for those landlords who require a little more flexibility.

“We have worked hard to ensure that our new summer range has something to meet a breadth of professional landlords’ requirements, as demand from tenants remains high.”¹

¹http://www.propertyreporter.co.uk/landlords/paragon-launches-new-range-of-three-year-fixes.html

New Mortgage Range for Smaller-Scale Landlords

Published On: November 7, 2012 at 4:59 pm

Author: Em Morley

Categories: Finance News

Tags: paragon mortgages,small scale landlords

Specialist mortgage provider Paragon has introduced a selection of new buy-to-let mortgages for established and small-scale landlords.

New Mortgage Range for Smaller-Scale Landlords

Within the Paragon brand, 18 new products by re-pricing six fixed rate deals and launching 12 trackers, aimed at professional landlords.

Its partner company, Mortgage Trust will offer landlords with smaller portfolios four fixed rate deals and two new trackers.

John Heron, Managing Director at Paragon says: “We expect that the new products will be well received by the intermediary market as we know they are seeing increasing demand from buy-to-let customers.¹

“The new products offer a much wider range of product options to landlords.

“The new Mortgage Trust products complement the existing range and are augmented by a state-of-the-art online service.

“The new Paragon Mortgages products are more suited to professional landlords who tend to need a more tailored approach for more complex rental properties.”²

In the three months to October, the average rental yield for landlords increased to 6.7%, from 6.2% in the previous quarter.

Paragon revealed that investors in the East of England generate the highest average returns, at 7.5%. Wales follows with 7.3%, the North East sees 7.2%, and yields are 7.1% in central London.

¹http://www.landlordexpert.co.uk/2012/11/06/new-mortgage-range-launched-for-smaller-scale-landlords/

²http://www.yourmortgage.co.uk/buy-to-let/paragon-launches-new-buytolet-range/