Specialist buy-to-let mortgage lender Paragon Mortgages has launched six new products aimed at the professional landlord market.
Specialist buy-to-let mortgage lender Paragon Mortgages has launched six new products aimed at the professional landlord market.
The new product range consists of six, two year fixed rate buy-to-let mortgages. Three of the new products are for self-contained, single unit properties at an ICR (Income Contingent Repayment) of 125 per cent at product charging rate or 5 per cent – whichever is the greater. The range also includes three identically priced products for landlords looking to purchase HMOs or multi-unit blocks with a 130 per cent ICR at 7 per cent.
Rates for the new products start at 4.50 per cent, with a maximum loan-to-value of 75 per cent for all products. The 5.99 per cent fix for HMOs/multi-unit blocks also benefits from a zero product fee.
John Heron, Director of Mortgages at Paragon Mortgages, said: “These new products have been designed for professional landlords who are looking to grow their portfolios at a time when confidence is returning to the buy-to-let market more generally.
“Landlords operating at the professional end of the market usually have more bespoke requirements and are investing in more niche properties, so we have tailored three of our new products specifically for HMOs and multi-unit blocks.”
The launch comes after Paragon made its biggest sale of bonds backed by loans since the financial crisis. The lender sold £273 million of triple-A rated notes as a securitisation transaction, raising finance for greater amounts of lending.
Talking about the securitisation Nigel Terrington, Chief Executive of Paragon, said there was a 40 per cent rise in the number of institutional investors that contributed to the buy-to-let surge: “We are seeing positive improvements generally in the buy-to-let market following renewed confidence from landlords and we will continue to grow this area of the business in the next 12 months.”
