22:13 PM, 27th January 2011, About 11 years ago
Buy to let specialist Paragon has advanced £8.8 million of loans and has a further £75 million of property investment deals in the pipeline, according to the lender’s interim management statement.
Paragon Mortgages returned to the buy to let market in October 2010 after a prolonged absence enforced by difficulties raising funds for borrowers during the credit crisis.
A deal with Australia’s McQuarrie Bank has given the lender a £200 million fund to finance buy to let purchases and remortgages.
The management statement also reveals Paragon piled up pre tax profits of £18.7 million between October 1 and December 31 2010.
“Activity has focused on re-activating our mortgage distribution network, including individual specialist buy to let intermediaries and larger mortgage networks,” said the statement.
“In addition, we have maintained close contact with existing customers, providing a complementary and efficient channel for the direct distribution of our mortgages.”
The firm says that its loan portfolio is performing in line with expectations.
At December 31 arrears over three months on the buy to let portfolio, including the portfolio acquired in September 2010, were 0.83, 0.76 excluding the acquired portfolio.
The £8.8 million advanced equates to about 60 mortgages at the average loan of £143,000 – the amount quoted as the average residential mortgage advance for December 2010 by the British Bankers Association (BBA).
Meanwhile, newcomer to the buy to let market Aldermore Bank is launching a new range of landlord mortgages that offer up to 75% LTV, with two-year discount and variable rates from 4.98%.
The deals include remortgage any use capital-raising personal or business packages with free conveyancing.
Charles Haresnape, managing Director of residential mortgages at Aldermore, said: “Our new buy to let range offers a choice of two year discount and term variable rates and three and five year fixed rates for investors looking for rate security or who simply want to lock in rental yield.
“We anticipate our very competitive five year fixed rate with a fixed price completion fee will appeal to longer term investors.”
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