Refreshed 2020 BTL mortgage range – Paragon

by Property 118

16:05 PM, 7th January 2020
About 2 months ago

Refreshed 2020 BTL mortgage range – Paragon

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Refreshed 2020 BTL mortgage range – Paragon

Paragon, the specialist bank and buy-to-let lender, has kicked-off 2020 with a refreshed range of mortgage products for portfolio and non-portfolio landlords.

The changes include lower rates on 14 different products across our range of mortgages up to 80% loan-to-value.

The range for portfolio landlords – those with four or more mortgaged properties – includes fixed rates starting at 2.75% for those looking to purchase or remortgage single, self-contained units (SSCs) and 2.85% for landlords seeking finance for houses in multiple occupation (HMOs) and multi-unit blocks (MBUs). Discount variable rates start at 2.65% for SSCs and 2.80% for HMOs and MUBs.

Highlights for portfolio landlords include a five-year and two-year fixed rate at 3.19% and 2.75% respectively. Both rates come with free valuation and £350 cashback.

Fixed and discount variable rates for non-portfolio landlords start at 3.45% and 2.65% on SSCs.

Landlords can choose from a range of two and five-year term products with a mix of low, starting at 0.25%, or zero product fees, free mortgage valuations and cash back offers. 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 (ICR) starting at 4.00%.

The increase in portfolio and complex buy-to-let business seen over the past two years is set to continue in 2020, according to Paragon. Complex completions increased from 79% to 89% of new business in 2019, reflecting the long-standing expertise that Paragon has in this specialised segment of the buy-to-let market.

Moray Hulme, Director of Mortgage Sales at Paragon, said: “In recent years, landlords have had to be more strategic in their approach than ever before and the buy-to-let market has seen a significant increase in portfolio and complex business.

“This new product range caters for the professional landlord with competitive pricing, low or zero product fees, free valuations and cash back offers. We’re excited to build on the momentum of a strong 2019, where we introduced a new Intermediary Portal and increased our proportion of lending to the professional landlord community, with this new range, including lower rates on 14 products.”

Portfolio Landlord Product Highlights

Single self-contained units (SSC) Fixed

LTV Product type Initial rate  fee Product criteria
75% 2 year fixed 2.75% 1.00% No app or valuation fee
£350 cashback
75% 2 year fixed 3.30% Nil No app or valuation fee
75% 5 year fixed 3.19% 2.00% Free valuation
£350 cashback
75% 5 year fixed 3.55% £1,250 Free valuation
£350 cashback
Max loan: £500k
75% 5 year fixed 3.65% Nil No app or valuation fee
80% 2 year fixed 3.45% 0.50% No app or valuation fee
£350 cashback
80% 5 year fixed 3.75% 0.50% Free valuation
£350 cashback

Single self-contained units (SSC) Discounted Variable Rate

LTV Product type Initial rate fee Product criteria
75% 2 year discount 2.65%
(Paragon SVR less 2.95%)
1.75% No app or valuation fee
75% 5 year discount 2.95%
(Paragon SVR less 2.65%)
2.00% No app or valuation fee

HMOs/Multi-unit blocks Discounted Variable Rate

LTV Product type Initial rate  fee Product criteria
75% 2 year discount 2.80%
(Paragon SVR less 2.80%)
1.75% No app or valuation fee
75% 5 year discount 3.10%
(Paragon SVR less 2.50%)
2.00% No app or valuation fee

Non-portfolio Landlord Product Highlights

Single self-contained units (SSC) Fixed

LTV Product type Initial rate fee Product criteria
75% 5 year fixed 3.65% 0.50% No app or valuation fee
£350 cashback
75% 5 year fixed 3.55% Nil No app or valuation fee
80% 5 year fixed 3.65% 0.50% No app or valuation fee
£350 cashback
80% 5 year fixed 3.70% Nil No app or valuation fee
£350 cashback

Single self-contained units (SSC) Discounted Variable Rate

LTV Product type Initial rate fee Product criteria
75% 2 year discount 2.80%
(Paragon SVR less 2.80%)
1.75% No app or valuation fee
75% 5 year discount 3.10%
(Paragon SVR less 2.50%)
2.00% No app or valuation fee

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