Buy-to-let  

3MC and Paragon expand buy-to-let range

3MC and Paragon expand buy-to-let range

3MC has added buy-to-let products to Paragon Bank’s portfolio range.

The mortgage distributor, which operates in the intermediary market, has introduced buy-to-let options which increase the maximum loan size up to 75 per cent loan-to-value (LTV) to £750,000 - exceeding the available amount on Paragon Bank’s core range by £250,000.

The products will be available to both limited companies and individuals, on houses of multiple occupation, multi-unit blocks and standard properties.

Doug Hall, director at 3MC, said the new additions come as portfolio buy-to-let landlords are becoming more sophisticated.

He said: "We have seen a growing demand from brokers whose clients are looking for larger loan sizes, particularly when it comes to investing in HMOs and multi-unit blocks.

"These exclusive products from Paragon Bank provide investors with an achievable and affordable way of funding larger investments."

The buy-to-let products are available in Scotland, England and Wales for purchase and remortgage, with five-year fixed rates starting at 3.75 per cent with a minimum required rental coverage of 125 per cent at 4 per cent.

Moray Hulme, head of sales at Paragon Bank, said her team recognised the demand for larger loan sizes in areas of complex propositions as an increasing number of portfolio landlords seek to grow and diversify their investments.  

She said: “We worked with Doug and his team at 3MC to develop these exclusive products and look forward to helping to fund the growing ambitions of portfolio buy-to-let investors."

Niall Hebron, director at Connect Mortgages, said portfolio landlord lenders are increasingly trying to attract clients by improving criteria or increasing loan sizes considered on a single property and in some cases developing specific large loan products. 

He said: "The margins have been squeezed and we are seeing limited edition products from lenders looking to fill up their pipeline for the coming quarters.

"We are seeing more house in multiple occupation and multi unit purchases, as well as semi commercial properties - I wonder how long it will be before we start to see buy-to-let lenders allowing semi commercial properties on their specialist products where the commercial is 40 per cent or less of the overall security, to offer clients more choice than using a traditional commercial mortgage."

"However lenders do need to ensure that their service levels still meet with the clients expectations, as there is no benefit to a client offering competitive rates and incentives, coupled with a poor service in processing."

rachel.addison@ft.com