One of the buy to let sector’s main mortgage lenders, Paragon, has refreshed its range of mortgages with new products which it says are suitable for companies as well as individual landlords.
Highlights include five-year fixed rate mortgages for portfolio landlords (that is, those with four or more mortgaged BTL properties) at up to 75 per cent loan to value with no product fee, no application fee, a free mortgage valuation and £250 cashback.
The new, five-year mortgage products include an initial interest rate of 3.80 per cent for portfolio landlords looking to purchase or remortgage single, self-contained units and 3.90 per cent for landlords seeking finance for houses in multiple occupation and multi-unit blocks.
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 starting from 4.00 per cent.
The Prudential Regulation Authority first introduced minimum underwriting standards for portfolio landlords in October 2017 and since then Paragon says it has seen an increasing proportion of its new business come from landlords with larger and more complex property portfolios.
Complex completions increased from 65 per cent to 79 per cent of new business at Paragon in 2018.
“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” according to John Heron, the firm’s director of mortgages.
“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.”