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0:02 AM, 27th March 2024, About a month ago
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Paragon Bank has introduced new mortgage options for experienced landlords looking to expand their buy to let portfolios with a range of five-year fixed-rate products with both low fees and competitive rates.
These new BTL deals are specifically designed for landlords who already own four or more BTL properties.
Borrowers can choose between a fee of 2.5% or an option with a higher fee of £1,999.
Rates start from 5.35% for energy-efficient single homes and go up slightly for properties with lower EPC ratings or those designated as Houses in Multiple Occupation (HMOs) or Multi-Unit Blocks (MUBs).
Paragon’s commercial director, Louisa Sedgwick, 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.”
She added: “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.”
Meanwhile, Foundation Home Loans has launched a new suite of products aimed at landlords looking to buy or refinance multiple properties under one title.
This could include situations where several farm buildings have been converted into individual dwellings or a traditional freehold block with multiple flats.
These mortgages are available for individuals, portfolio landlords and limited companies.
Foundation offers fixed rates for both two and five-year terms, with a minimum loan size of £100,000 and a maximum of £3 million depending on the loan-to-value ratio.
Foundation’s director of product and marketing, Tom Jacob, said: “By launching ‘Solutions by Foundation’ at the start of year, we have been able to look at more specialist lending requirements and to offer specific products that fit these niche areas, but are increasingly in demand.
“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 buy-to-let 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.”
He adds: “The concept clearly has similarities with existing Multi-Unit Freehold Blocks but in this scenario, we can lend on up to four dwellings or separate houses or flats on just the one title.”
The Mortgage Works (TMW) will be reducing rates on selected buy to let and limited company products by up to 0.40 percentage points.
Buy to Let: selected rates reduced by up to 0.15%. The new rates include:
TMW’s head of specialist lending, Dan Clinton, said: “As one of the UK’s leading buy to let lenders, we continue to support landlords with a range of product options.
“We know that rate is a key consideration for those in the buy to let and limited company market as they try to manage their finances through fixed rates.
“The current environment means we’re pleased to be able to make reductions on selected mortgages from tomorrow.”
