It has also removed a floating charge for limited companies set up solely to hold and let residential properties.
Among the new portfolio of BTL products is a two-year fixed rate at 3.49 per cent for borrowing up to 80 per cent loan-to-value (LTV) on single self-contained (SSC) units.
For houses in multiple occupation and multi-unit blocks there is a two-year fixed rate at 3.69 per cent for borrowing up to 80 per cent LTV.
New portfolio switch products in Paragon’s range include a two-year fixed rate at 3.99 per cent on borrowing up to 80 per cent LTV on SSC units.
Paragon’s new non-portfolio further advance buy-to-let products include a two-year fixed rate at 3.55 per cent and a five-year fixed rate at 3.90 per cent, both for borrowing up to 80 per cent LTV on SSC units.
The lender said the removal of the requirement for a floating charge on limited company applications will improve service delivery and make applying to Paragon easier for BTL mortgage intermediaries and customers.
This move is the latest in a line of changes from Paragon, which is aiming to roll out more products for portfolio landlords. It follows the launch of a new CaseTracker app and the removal of valuation and administration fees on all portfolio products.
CaseTracker is available to download from the Apple iTunes Store. Existing Paragon intermediaries can log in using the same user credentials they use to apply online and manage their BTL mortgage applications from a mobile, tablet, laptop or desktop device.
Inside the app, the list of tasks brokers will be able to carry out include responding to an outstanding task through the app, uploading comments and documents directly to Paragon's underwriting system and calling or emailing the customer relationship team directly.
Provider view
John Heron, managing director for mortgages at Paragon, said: “Paragon has always been known for its specialist lending capability and particularly its focus on professional landlords. These new competitive products for portfolio landlords underline this approach and are supported by ongoing developments in our lending policy and service delivery.
“For us, it’s all about offering choice and making the portfolio application process as straightforward as possible. This extended range of products, along with the removal of floating charges, valuation and admin fees – and the ability to manage everything online or through the CaseTracker app – does just that.”
Adviser view
Carl Shave, director at Suffolk-based Just Mortgage Brokers, said: “With a revised product range together with the removal of valuation and administration fees, Paragon continues to maintain the presence of its brand name in the specialist BTL market.
“It is a welcome introduction of Paragon's view to remove its floating charge, which has been a barrier for some in the past. With its understanding of the specialist BTL market, the recent changes will ensure it remains a choice for many in this sector.”
Charges
Mortgages for portfolio landlords: Free valuation and no application fee.
Mortgages for non-portfolio landlords: SSC only, no limited companies or limited liability partnerships. Free valuation, application fee of £150 to apply.
Verdict
The buy-to-let market has suffered considerably in the past year as a result of changes introduced by the government. Any proposition that lenders such as Paragon can introduce to help strengthen the market will do well to attract adviser interest.
Ima Jackson-Obot is a features writer at Financial Adviser
