Paragon has launched a range of limited edition buy-to-let (BTL) mortgage products for portfolio landlords who have four or more mortgaged properties.
The lender is also offering a free mortgage valuation and up to £500 cashback.
Product features include a two-year fixed rate at 3.4 per cent for landlords borrowing up to 75 per cent loan-to-value (LTV) on single self-contained units, and a two-year fixed rate at 3.6 per cent for those borrowing up to 75 per cent LTV on houses of multiple occupation (HMOs), and multi-unit freehold blocks (MUB) properties.
The limited edition range also caters for landlords looking for longer term cost certainty and includes a five-year fixed rate at 3.74 per cent for borrowing up to 75 per cent LTV on self-contained units, and a five-year fixed rate at 3.84 per cent up to 75 per cent LTV for borrowing on HMO and MUB properties.
All products come with a free mortgage valuation.
Additionally, the products include £250 cashback upon release of funds for customers who select a two-year fixed rate mortgage and £500 for those who elect for a five-year fixed rate.
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.All of the limited edition products are available for purchase and remortgage.
Paragon has also rolled out online product switches and a further lending facility for buy-to-let (BTL) mortgage customers and intermediaries.
Back in early March, the lender said it was hoping to simplify product switching and to make additional lending available online for buy-to-let 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.
Provider view:
John Heron, managing director of mortgages at Paragon, said: “Our new limited edition BTL range brings added choice and flexibility for portfolio landlords looking to refinance or expand.
“The addition of cashback provides an extra boost, helping landlords fund the up-front costs associated with arranging finance and enhancing value for this important segment of the market.”
Adviser view:
David Hollingworth, associate director of communications at L&C Mortgages, said: “It is now six months since the Prudential Regulation Authority rules on portfolio lending were introduced, requiring lenders to gather more information about a portfolio landlord’s entire portfolio rather than simply looking at a single property in isolation.
“Paragon is a lender that has always been a specialist in the professional landlord sector and so offering products aimed at portfolio landlords is very much business as usual for them.
"However, it does show that lenders are keen to ensure that they have developed the right options for their borrowers.”
Charges:
To be confirmed.
Verdict:
These deals recognise that portfolio landlords will want to keep on top of their mortgage rates, so incentivising those looking to switch their deal with cashbacks looks a good move. The rates are particularly likely to hold appeal for those holding property within a limited company structure and there are options for those with HMO or multi-unit blocks, as well as those catering for single properties.
ima.jacksonobot@ft.com
