Buy To Let Mortgage Lender Returns To Market

Paragon is returning to new lending by offering a range of buy to let mortgages for professional landlords.

Since the credit crunch, there have been a substantial reduction in buy to let mortgage products available as lenders withdrew products or left the lending market entirely.

Landlords, who have generally struggled to obtain finance over the last two years, will be pleased to learn that Paragon Mortgages is returning to the buy to let mortgage market with a range of fixed and tracker products.

The product range includes fixed rates starting from 5.3% and tracker rates starting from 4.3%. Paragon’s lending criteria mean it can offer professional landlords facilities that are not widely available elsewhere, such as limited companies, multi-unit blocks and Houses in Multiple Occupation (HMOs).

Instead of striving to build market share, Paragons’s lending approach will focus on a prudent and risk averse strategy and will look to build long term relationships with customers and only offer products that have a long term viability and profitability for the company.

Paragon will underwrite each application on an individual basis, rather than solely relying on computer scoring, and employs its own team of surveyors to assess the property thoroughly and designs its products to appeal to good quality, experienced landlords.

These are the fixed rate buy to let products announced by Paragon:

• Two-year fixed at 5.30% 2% fee 65% max LTV
• Two-year fixed at 5.50% 2.25% fee 75% max LTV

Their two and five year tracker products:

• Two-year 4.30% (Libor + 3.5%) 2% fee 65% max LTV
• Two-year 4.80% (Libor + 4%) 2.25% fee 75% max LTV
• Five-year 4.55% (Libor + 3.75%) 2% fee 65% max LTV
• Five-year 5.05% (Libor + 4.25%) 2.25% 75% max LTV