Paragon Bank, Keystone Property Finance and Foundation Home Loans have made changes to their BTL product suites.
Paragon Bank
Paragon Bank has expanded its range of BTL mortgages for portfolio landlords by launching six five-year fixed rate products, with 2.5% and £1999 fee options.
Paragon’s 2.5% fee five-year fixed rate product has rates starting at 5.35% for energy efficient (rated A-C) single self-contained homes, increasing to 5.40% for properties with EPC ratings of D or E.
The specialist lender is also offering a product, priced at 5.60%, for portfolio landlords purchasing or remortgaging HMO or MUBs.
Alternatively, the £1,999 fee option is priced at 5.70% for SSCs with EPC ratings of A-C, increasing by 5bps to 5.75% for properties rated EPC D or E, and 5.90% for HMOs and MUBs.
A maximum loan size of £250,000 is applied to these products.
All products are available to landlords with four or more BTL mortgaged properties, applying in personal name or utilising limited company structures in England, Scotland and Wales.
ICRs are calculated in line with initial rates and products are subject to an application fee of £299.
Louisa Sedgwick, commercial director at Paragon Bank, said: “We continuously monitor the market and review our product suite to ensure we’re offering value for borrowers.
“Equally important as all of the number crunching is listening to brokers who have told us that low-fee options would offer a solution in scenarios where purchase prices are lower or capital doesn’t appreciate as quickly.
“This is where these products fit in.
“We’re broadening the choice on offer to brokers, ensuring we have products in our range to cater for all landlords regardless of the loan size.”
Keystone Property Finance
Keystone is withdrawing all of its BTL five-year fixed products at 5:30pm today (26th March 2024).
This is in preparation for reduced BTL rates which the lender is going to launch tomorrow.
To access the lender’s current rates, the FMA and application fee must be submitted by 5:29pm today.
Foundation Home Loans
Foundation Home Loans has today launched a new suite of products specifically for landlords buying or refinancing multiple properties under one title.
The new product suite is available under the ‘solutions by foundation’ brand, which offers broad and specialist criteria and products for an additional layer of specialist BTL needs, covering multi-occupancy properties, mixed-use property (part-commercial) and expat borrowers.
Available to individuals, portfolio landlords and limited companies, and for letting on a standard AST, short-term let or holiday let basis, Foundation is able to lend against up to four individual properties or units on one freehold title.
Products include two- and five-year fixed rates, available to both 65% and 75% LTV, with rates starting at 6.69% for the two-year deals and 6.54% for five-year.
The product fee is 2%.
The maximum loan size for 65% LTV is £3m and £2m for 75% LTV, with a minimum loan size of £100,000.
Tom Jacob, director of product and marketing at Foundation, said: “These new products for landlords seeking to either buy or remortgage multiple properties under one title fit that particular billing, and not only can we offer them for standard BTL AST rental agreements, but we can also cover both short-term lets and holiday lets, which we believe is a strong offering within this particular sector of the PRS.
“Increasingly, landlords are looking at ways to broaden their portfolio, increase their yield, and focus on different areas of the rental sector.
“The concept clearly has similarities with existing MUBs but in this scenario we can lend on up to four dwellings or separate houses or flats on just the one title.”
