Paragon has rolled out online product switches and a further lending facility for buy-to-let (BTL) mortgage customers and intermediaries.
The lender said it was hoping to simplify product switching and to make additional lending available online for BTL mortgage customers and intermediaries.
Paragon said this is the first time customers and intermediary partners will be able to choose a new product at the end of their fixed term agreement and be able to switch online.
These new services are the latest in a line of key developments, the lender said.
It follows the launch of an improved application process for intermediaries across multiple platforms and the removal of valuation and admin fees on all portfolio, including the removal of a floating charge requirement on all applications from limited companies incorporated solely for the activity of holding and letting residential properties, the lender added.
Existing Paragon intermediary customers can log in to the website using the same user credentials they use to apply online and manage their BTL mortgage applications.
Provider view:
John Heron, managing director of mortgages at Paragon, said: “Our aim is to ensure dealing with Paragon is always as simple and easy as possible. These developments are a crucial step towards future proofing our service to customers and intermediary partners – and are just a couple of examples of the many investments we’re making in our BTL mortgage process.”
Adviser view:
Jorden Abbs, director of operations of BTL broker Commercial Trust Limited, said: “We handle large volumes of applications each week, and as such we welcome any improvement in technology from lenders. Ticking the boxes on product is vital, but speed and ease of servicing is also very important.
“Very often timescales are critical to our landlord investors, so if one lender can process a case more quickly than another, it can be critical to delivering the service a client is looking for and may sway their decision as to where to place their business.
“Furthermore, at a time when regulatory changes can, at times, slow the underwriting process for some lenders, any gains that can be achieved elsewhere are beneficial.
“Paragon are especially competitive within a specialist niche, offering great rates on limited company and houses in multiple occupation products.
“Having a floating charge across other properties was off-putting for many investors, as you might appreciate, because a client would understandably not want Paragon having a hold on properties outside of the deal they were placing with them. Having lifted this restriction opens the door of opportunity for more landlords to work with them.
“Similarly, by lifting valuation fees where other lenders may charge them, this gives a competitive edge.”
Charges:
Mortgages for portfolio landlords; free valuation and no application fee.
Mortgages for non-portfolio landlords, single, self-contained properties only, no limited companies or limited liability partnerships: free valuation, application fee of £150 to apply.
Verdict:
As the government is pushing the BTL industry towards investment by professionals, Paragon’s product offering includes the sorts of products that this audience will need, it is no surprise that Paragon has seen an opportunity and is working on widening its net.
