Tag Archives: Paragon Mortgages

Remember our background is in BuytoLet and Commercial finance Buy to Let News, Commercial Finance, Latest Articles

PartnersRemember our background is in BuytoLet and Commercial finance Mark, Mike and I met through the common background of BuytoLet and Commercial Finance. Over the years through The Money Centre and now Property118 we have literally helped 10s of thousands of Landlords, developers and investors start and grow their property businesses.

Unfortunately we are now old enough to have seen, done and bought the t-shirt for most things in the property finance industry including Mark and Mike being founder members of the NACFB (National Association of Commercial Finance Brokers) and working with Nationwide Building Society and Paragon Mortgages on the concept of Forward Buying Facilities.

We have been sharing our experiences and strategies for property finance as much as we can with readers, but there is always a time when you just need some help.

To start with we have our own BuytoLet mortgage sourcing system and calculator, which we designed ourselves and I keep updated. This will help you see how much you could borrow, what the costs would be and which are the most popular Lenders and Products.

We have a team of highly experienced NACFB member commercial finance Brokers who can advise you on and source the best Commercial, Development finance and BuytoLet deals.

If you need help with…

Buy to Let mortgages  : info@property118.com

Commercial Mortgages CLICK HERE

Development Finance CLICK HERE

Bridging Finance CLICK HERE

…. or guidance regarding property finance you can email us on : info@property118.com Call Property118 on: 01603 489118

Or contact me directly on npatterson@property118.com.

Paragon Mortgages MD Calls for BTL Code of Practice Buy to Let News, Latest Articles, UK Property Forum for Buy to Let Landlords

John Heron, the Managing Director of Paragon Mortgages has been a good friend of mine for several years. Despite this I don’t agree with everything he has said in a paper he’s recently published calling for a Code of Practice for private sector BTL landlords.

To quote from his paper, Mr Heron said ….

John Heron Managing Director Paragon Mortgages

John Heron Managing Director Paragon Mortgages

“I have argued passionately for many years that buy-to-let is not a consumer product, that buy-to-let borrowers are financially sophisticated property investors and that they do not need the level of protection afforded to consumers under MCOB.”

The typical client of Paragon Mortgages may well fit this description, however, many people who enter the BTL market certainly don’t intend to own large property portfolio’s or treat BTL as their full time profession. They are just normal hard working folk who don’t trust pensions and the stock market and are looking for a home for their retirement nest egg. Many others become landlords because they move in with new partners and rent their former home as opposed to selling it. These people are consumers to my reckoning and deserve consumer protection. If things go well for these people and they go on to buy a few more properties does that make them sophisticated investors and if so at what point?

There has never been a definitive legal case which defines a landlord as a consumer. The closest I’m aware of was the case of OFT vs Foxtons which argued that a contract issued by the letting agent was unfair based on the Unfair Consumer Contract Terms Act 1999. The case was upheld which demonstrates that a landlord can indeed be treated as a consumer. However, there was no definition as to what circumstances would constitute a consumer landlord.

Some mortgage lenders base their lending criteria very much on a persons ability to support BTL mortgages from their earned income. These lenders tend to limit their criteria to financing only a handful of properties. The Principality Building Society are a very good example of this as they will not lend to a landlord who owns more than five properties. I would argue they are a consumer based lender.

The flipside to the above is The Mortgage Works who don’t pay much attention at all to their borrowers personal income and place far more emphasis, in terms of lending criteria, on the cashflow of the property/portfolio they are being asked to lend against.

I would like to see the industry develop a clear definition of what constitutes a consumer vs a professional/sophisticated landlord and for that to become a backdrop to lending criteria. Number of properties alone would not be a good enough benchmark in my opinion. If a person earning £25,000 a year was to inherit £250,000 and purchase a portfolio of 10 properties worth £1 million could they really be deemed to be sophisticated investors?

For landlords to be treated as “sophisticated investors” for funding purposes I also believe they should have a better than average understanding of what being a landlord is all about, whether they choose to outsource the management of their property portfolio’s or not. Basic knowledge can be obtained very efficiently though the landlord accreditation courses which are now run by the larger landlords associations.

Why don’t mortgage lenders who target landlords owning multiple properties make it part of their criteria only to lend to accredited landlords? Surely that would reduce their risk too?

I do agree with many of the other points made in John Heron’s paper which also touches on BTL mortgage funding being abused to purchase homes which would be deemed unaffordable on a traditional home owner mortgage basis.

You can read John Heron’s full article by completing the simple form below (available to Property118 members only – you must be logged in to see the form).

I am also interested in reading your comments, so my question is; what are your thoughts on this?

Oops! We could not locate your form.

Latest Newsletter dated 22nd February 2013 Landlord News, Latest Articles, Property News, UK Property Forum for Buy to Let Landlords

NEWS from Paragon Mortgages for Professional LandlordsThis week 29 pages have been added to Property118.

(Links to the relevant pages are in blue and underlined).

5 Readers Questions Articles and Discussions

  • I think my tenants removal company knocked my garden wall down
  • Legal advice required on Scottish HMO issue
  • Shared ownership – can this be done on leasehold flat?
  • Should I sell tenanted or serve notice and sell with vacant possession?
  • Parting company with my letting agent

3 New Auction Catalogues for you to download

  • Network Auctions 6th March 2013 – Glaziers Hall, London SE1 9DD Commencing: 1pm
  • Pearsons Property Auction 5th March 2013 – 11am Hambledon Suite, The Solent Hotel, Fareham, PO15 7AJ
  • Salter McGuiness Property Auction 5th March 2013 – 1.30pm Quality Hotel, Empire Way, Wembley, HA9 0NH

11 New Articles containing News and Reviews:

To keep you up to date and help you to save money, minimise risks and maximise returns

Some good News for Landlords in Scotland at last

I keep in touch with what’s going on in the lives of my fellow landlords North of the border via my friends at the Scottish Association of Landlords…

Kent Reliance release new buy to let range for portfolio landlords

Buy-to-let products with no restriction on the size of the landlord’s portfolio. They are available for loans of up to £1m at 85% LTV, and at 75% TV for loans over £1m.

Property Portfolio Review Spreadsheet – FREE Download

This property portfolio review spreadsheet calculates your rental yields net of voids, the interest rate which will make your portfolio cash neutral and the true costs of rental void periods

Suffolk Holiday Homes on sale at bargain prices

You could own one of these 3 bed, brick built, double glazed Suffolk Holiday Homes for personal use or as an investment for just £55,995. That’s not the deposit, it’s the cash price!

A Landlords Mid Life Crisis

OMG, what have I done to this poor landlord! I wrote an article a while back called 10 things landlords must do before it is too late.

Tenants in Scotland missing vital deposit protection information

Tenants in Scotland could be missing vital information which can affect the return of their deposits at the end of the tenancy.

LANDLORDS – don’t let tenants steal your property

Is it even possible that tenants could steal a property you might ask! As part of its campaign to stamp out property fraud, the Land Registry has just set up a dedicated phone line.

Oxford – Not Hot But Always Warm!

I am often asked why Oxford represents such an attractive option for buy to let property investors.

Wealth Tax proposed by Lib Dems could affect Landlords

One of the best forum posts I’ve ever seen on the topic of economics and  the proposed new Wealth Tax.

Sprightly start to 2013 but ‘old hands’ support the market

Rightmove have just released their February 2013 House Price Index which shows a “Sprightly start to 2013”

Residential Property Inventory Services In A Nutshell

What is an Inventory? To sum it up in simple terms, an inventory is a detailed list using specific phrases to describe the features, items and condition of a property.

Good Landlords Campaign Click Here to see Sponsors

We would like to welcome the following new sponsors of the Good Landlords Campaign

  • Peter Harris of Bristol

  • Anthony Altman of Platinum Property Sheffield
  • Brian Turner of SCPR Sheffield
  • Dave Gardner of Top Management Wellingborough

  • Matthew Farrow of Phoenix Independent Advisers Cromer

  • Richard Baker – Northampton and Rugby
  • Oliver Cornes of Juicy Property London

  • Bill Cooper of WDC Rentals Ewloe

  • Glyn Jones of GPJ Ltd Stockton on Tees

  • Ramesh Pindoria of Regal Estates Willesden

Don’t miss this opportunity …….

Don’t miss this opportunity …….

The closing date to become a founder member of The GOOD Landlords Campaign is fast approaching. It doesn’t matter whether you have one property or you are a full time landlord, we welcome anybody who believes in sharing best practice in the UK Private Rented Sector. That includes letting agents and other associated property professionals…

Paragon releases new buy to let terms for professional landlords Buy to Let News, Landlord News, Latest Articles, Property News, UK Property Forum for Buy to Let Landlords

NEWS from Paragon Mortgages for Professional LandlordsNEWS from Paragon Mortgages for Professional Landlords

Paragon Mortgages has updated its product range for professional landlords. The range includes six two year fixed rate products fixed until May 2015 with rates starting from 4.99%. There are also 12 two year trackers, with maximum LTVs between 65% and 75%, and one five year tracker. Intermediaries can submit applications using the new Paragon Mortgages online application service, which allows for multiple applications and instant lending decisions. Continue reading Paragon releases new buy to let terms for professional landlords

You can remortage within six months! Buy to Let News, Commercial Finance, Landlord News, Latest Articles, Mortgage News, Property Investment News, Property News, UK Property Forum for Buy to Let Landlords

It is possible to remortage within six months of purchase, even on a buy to let property, I promise you! Forget everything you have heard about “the CML’s six month rule”, no such rule exists! 

The legend of the “CML’s six month rule” for remortgaging has been bandied around forums for at least five years now but I can assure you that no such rules exists – allow me to explain. You can remortage within six months! Continue reading You can remortage within six months!

Confident landlords plan to buy more homes to let Buy to Let News, House Prices, Landlord News, Latest Articles, Property News, Property118 News

Falling prices and relaxed buy to let finance lending has let landlords swoop to add properties to their portfolios.

The average professional property business portfolio increased to 14.1 during the last three months, according to a poll by landlord lender Paragon Mortgages. Continue reading Confident landlords plan to buy more homes to let

Third of Landlords Ready to Buy More Rental Homes Buy to Let News, Latest Articles, Lettings & Management, Property Investment News

Nearly a third of landlords have plans to buy more rental property this year, according to specialist buy to let lender CHL Mortgages.

Landlord confidence is running high with just 1 in 10 aiming to sell property or leave buy to let, with 31% set to expand their portfolios, while the rest continue with business as usual. Continue reading Third of Landlords Ready to Buy More Rental Homes

Landlords ready to sink more cash in to buy to let Buy to Let News, Latest Articles, Lettings & Management, Property Investment News, Property Sales & Sourcing, Property Sourcing

Landlords are still purchasing more buy to let homes, according to research by a mortgage lender.

Property investors piled cash in to buy to let in the first three months of 2012, adding an average 1.8 homes to their portfolios, says Paragon Mortgages. Continue reading Landlords ready to sink more cash in to buy to let

Confidence is high for buy to let landlords and brokers Buy to Let News, Latest Articles, Mortgage News, Property Market News

Buy to let mortgage brokers are celebrating a buoyant first quarter of business as landlord demand for loans increased.

Almost 80% of mortgage brokers expect buy to let to continue growing for the rest of the year, according to the findings of a buy to let broker sentiment survey by Paragon Mortgages. Continue reading Confidence is high for buy to let landlords and brokers

First drop in buy to let lending for two years Buy to Let News, Latest Articles, Lettings & Management, Mortgage News, Property Market News

Demand for buy to let lending has dropped for the first time in two years, according to the latest Bank of England lending survey.

Specialist landlord lenders told the Bank that they expect the figures to be a blip and the market will quickly recover from the slight fall. Continue reading First drop in buy to let lending for two years

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