Paragon launches ‘top-end’ landlord range

Paragon launches ‘top-end’ landlord range

Paragon Mortgages is launching a new product range aimed at professional landlords with larger-scale portfolios; available through an exclusive distribution network.

Paragon Premier features enhanced criteria and includes a range of lifetime trackers starting at 4 per cent, three-year fixes starting at 3.55 per cent and five year fixes at 4.5 per cent.

The new product range will include loan-to-values of up to 80 per cent.

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John Heron, managing director of Paragon Mortgages, said that they are designed for “top-end” professional landlords, specifically those that hold their portfolios in special purpose companies.

“As this is a pilot scheme for more complex buy-to-let cases, we are working with a limited number of specialist intermediaries with a proven track record in the market.

“Whilst we have been working on this development for some time, we do expect that interest in the scheme will be boosted by the proposals to limit landlord tax relief in the Summer Budget,” he added.

In July, chancellor George Osborne stated that tax relief for wealthier landlords would be reduced from 40 and 45 per cent currently to 20 per cent for all individuals by April 2020.

“Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas homebuyers cannot, and the better-off the landlord, the more tax relief they get,” he commented at the time.

The following month, analysis from Moody’s suggested that the move would curb short-term lending in the sector and slow house price growth.

Emily Rombeau, an analyst at the ratings agency, said the government’s decision reflects a willingness to put investors and owner-occupied borrowers on a more level playing field, given that the latter cannot claim tax relief on their mortgages.