Tag Archives: Paragon Mortgages

Buy to Let Keeps Mortgage Market Afloat Buy to Let News, Latest Articles, Mortgage News, Property Investment News

Small white houses with big sale sign behind

"Nearly half investors remortgage for new property purchases"

Capital raising to invest in more property is driving the buy to let remortgage market, according to a lender.

Almost half of landlords (47 per cent) told Paragon Mortgages that their main reason for remortgaging was to raise funds to expand their portfolios.

More than a third (35 per cent) switched mortgages for a better interest rate. A few (8 per cent) were not happy with their lender and a similar number were encouraged to go to take another deal by their lenders. Continue reading Buy to Let Keeps Mortgage Market Afloat


Landlords Look to Families for the Future Buy to Let News, Latest Articles, Property Market News

Buy To Let house with rent sign outside

"Family homes are becoming more popular with buy to let landlords"

Landlords are becoming more family orientated and buying bigger homes to rent, according to a buy to let mortgage lender.

Paragon Mortgages research highlights that landlords buying investment property this quarter are keener on larger homes.

Around four out of 10 are looking to invest in semi-detached houses and a fifth are looking to buy a detached home.

The previous quarter showed 28 per cent of landlords wanted to buy semi-detached property and just nine per cent showed an interest in detached houses. Continue reading Landlords Look to Families for the Future


Biggest Mortgage Lenders Dominate 81% of the Market Latest Articles, Property Market News

Small house on mortgage application form

"New figures show gulf between major and minor buy to let lenders"

The Big Six mortgage lenders account for 81.5% of all buy to let and home buyer mortgages in the UK, according to figures from the Council of Mortgage Lenders.

The Big Six advanced £110.8 billion in 2010, while the 27 remaining lenders advanced £23.5 billion – an indication of the gulf between the major and minor players in mortgage lending.

For landlords, the figures are slightly skewed as Paragon Mortgages did not restart lending until October 2010, so the company’s results are missing from the figures. Continue reading Biggest Mortgage Lenders Dominate 81% of the Market


Limited Options for Corporate Buy to Let Loans Buy to Let News, Latest Articles, Mortgage News, Property Market News

House on calculator

"The Mortgage Works leaving the market has left it short"

As the largest buy to let lender pulls out of the corporate buy to let market, landlords with companies now have limited options for borrowing.

The Mortgage Works – the specialist buy to let lending arm of The Nationwide – was one of a declining number of lenders willing to take on lending to property investment companies.

But the lender has now withdrawn from the market. Continue reading Limited Options for Corporate Buy to Let Loans


Money Men Predict Surge in Buy to Let Buy to Let News, Latest Articles, Property Market News

Row of buy to let signs

"Buy to let is a changed market"

The case for investing in buy to let is moving into sharper perspective as financial firms with a vested interest in selling to landlords disclose their business insights into the sectors.

For landlords thinking about the future of the rental businesses and the prospects of expanding, it looks rosy.

The latest private rented sector statistics from the Communities and Local Government Department and estimates for the number of new homes needed to meet the demand of a growing population provide the hooks for everyone to hang their prediction hats on.

The CLG figures reveal 17.4% of homes are buy to lets, up from 16.4% in 2009. Around 3.1 million homes are rental properties – an increase of 229,000 since 2009. Continue reading Money Men Predict Surge in Buy to Let


What’s Your Opinion About Sentiment Surveys? Latest Articles

Big red X on survey form

"Surveys of a survey"

Around a quarter of UK landlords are feeling more optimistic about the prospects for their property portfolios, rental income and yields, according to a sentiment survey by a buy-to-let lender.

The findings of the Paragon Mortgages research come at the same time as those of another sentiment survey by the Royal Institution of Chartered Surveyors concludes the housing market is ‘flat’. Continue reading What’s Your Opinion About Sentiment Surveys?


Paragon lends £65.7 million to buy to let investors Buy to Let News, Latest Articles

paragon logo

"Paragon announces latest figures"

Buy to let mortgage specialist Paragon has announced completing new lending of £65.7 million for the second quarter of 2011.

The firm disclosed this is around two-thirds of buy to let completions by Paragon Mortgages since the firm reopened lending books on October 1st last year, after a lengthy absence from the market due to the credit crisis.

Some simple arithmetic to analyse the figures reveals how Paragon stands in the market as one of the most publicly vocal firms speaking out against the proposed European Union mortgage directive that could regulate buy to let lending in the UK.

The last whole-of-the-market buy to let lending figures are for the quarter ending March 31 this year from the Council of Mortgage Lenders (CML).

The CML collates lending figures from all the UK’s biggest bank and building society mortgage lenders – including Paragon.

The figures show that for the first quarter, CML buy to let lenders completed £2.9 billion of mortgages across 27,600 loans – at an average loan value of £105,000.

Taking the Paragon lending of £65.7 million and dividing by the CML average loan amount, the rough indication is Paragon advanced funds on around 638 properties in the second quarter.

If this is around two thirds of their completions, the firm has advanced loans on around 950 properties since October 2010.

John Heron, director of mortgages at the Paragon Group, said: “We had a strong focus on rebuilding our distribution network and brand awareness following our return to the market and it’s pleasing to see that approach start to deliver.

“The fact that two-thirds of completions came in the third quarter of our financial year alone shows our new lending is building strong momentum.”

The lender also confirmed negotiations are underway to release more funds for further lending.


Buy to let mortgage market is stuck in a rut Buy to Let News, Latest Articles, Mortgage News

paragon logo

Buy to let market stuck in rut?

Buy to let mortgage availability is seemingly not improving despite the best efforts of property professionals to talk up the market.

The latest insight comes from mortgage brokers – with half reporting no change in business with landlords during the three months ending May 31, while the other half said business was up. Continue reading Buy to let mortgage market is stuck in a rut


Mortgage Trust launches new Buy to let product range Buy to Let News, Latest Articles, Mortgage News

House with a keyIn a press release today Mortgage Trust launched its new Buy to let product range with a quote from John Heron, Mortgage Trust Managing Director, saying: “Mortgage Trust returned to lending in April and we have secured a strong position back in the buy-to-let market in this short space of time.

Continue reading Mortgage Trust launches new Buy to let product range


Students are the most profitable tenants HMO's & Student Lets, Latest Articles

House on calculator

Students are most profitable tenants for landlords

Landlords seeking high yields need to focus their property businesses on students and young professionals.

Students are clear leaders in the yield table – generating 6.45% a year – with young professionals following close behind at 6.22%, according to Paragon Mortgages research. Continue reading Students are the most profitable tenants


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