Pepper Money and Paragon boost the BTL market with new solutions

Pepper Money has revealed it is returning to the buy to let mortgage market with a versatile range.

Paragon Bank has also announced it is broadening its 80% loan-to-value (LTV) offerings, introducing product switches and further advances to support property investors.

Pepper Money’s re-entry brings a landlord-focused range, accommodating both limited companies and individuals managing up to 10 properties.

With competitive rates from 4.99% and borrowing limits reaching £4m, the lender has raised its maximum loan to £2m at 65% LTV or lower.

Re-entering the BTL market

The lender’s sales director, Paul Adams, said: “We’re re-entering the buy to let market with a new product offering designed to maximise choice and convenience for residential landlords in the UK.

“We know the market is tough for landlords right now, with an increasingly complex regulatory environment to navigate and rising affordability challenges.

“With no requirement for a minimum income, bank statements or credit scores, our new buy to let offering is designed to support landlords to raise capital for a range of purposes, including consolidating debts to reduce monthly outgoings, or bringing their property’s EPC rating up to a minimum of C ahead of the UK government’s planned 2030 deadline.”

Its BTL mortgages offer up to 80% LTV for properties with A-C energy performance certificate (EPC) ratings, 75% for D-rated properties and 70% for E-rated ones.

Will focus on rental income

Pepper is also simplifying its process by focusing on property rental income, assessed by independent RICS surveyors, and it will accept diverse deposit sources like gifts and directors’ loans.

With loan terms up to 35 years and lending available until age 85, the range caters to both novice and seasoned investors.

Pepper’s focus on flexibility aims to help landlords consolidate debts or fund EPC improvements, supported by collaborative efforts with brokers to deliver competitive rates.

Paragon boosts its BTL range

Meanwhile, Paragon Bank has enhanced its BTL portfolio by extending 80% LTV mortgages to include product switches and further advances.

Starting at 6.24% for five-year fixed-rate deals, these products target single self-contained properties, houses in multiple occupation and multi-unit blocks.

Benefits include free valuations and no application fees.

Paragon’s commercial director of mortgages, Russell Anderson, said: “Adding 80% LTV products to our range gives landlords more choice and flexibility, and we have seen a positive response to the launch of our purchase and remortgage range in April.

“We want to ensure that our existing customers also benefit from the flexibility that 80% LTV products offer, so we are pleased to expand our range to both product switches and further advances.”

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