Paragon has removed the requirement for a floating charge on limited company buy to let applications and Landbay supports first-time landlords.
This applies to those companies incorporated solely for the purpose of holding and letting residential properties. Paragon has removed the charge with the aim of improving service delivery to Special Purpose Vehicle (SPV) limited companies and make applying to Paragon easier for buy to let mortgage intermediaries and customers.
Additionally, Paragon has launched an extended range of Portfolio and Non-portfolio buy-to-let mortgage products.
Among the new Portfolio buy-to-let range are a couple of products for landlords looking to borrow up to 80% loan to value. There is a two year fixed rate at 3.49% for borrowing for standard units, and a two year fixed rate at 3.69% for HMOs and multi-units such as blocks of flats.
Commenting, John Heron, Managing Director of 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 are supported by ongoing developments in our lending policy and service delivery."
Paragon does not lend to trading businesses. This is the domain of just a handful of buy to let lenders including Landbay and Keystone Property Finance which also do not require a floating charge or debenture.
Landbay has today announced that it is extending its lending criteria to include first time landlords who do not currently own a residential property.
First time buyers will now be able to apply for a buy to let mortgage from Landbay if they are employed and earning a minimum income of £85,000. Borrowing is available solely through Landbay’s approved distributor partners which includes Mortgages for Business.
Paul Brett, Managing Director of Intermediaries at Landbay commented:
“The last few years have been something of a policy rollercoaster for the buy to let market, causing some smaller landlords to exit the market altogether. However, ultimately tenant demand shows no sign of letting up, and new landlords are continuing to enter the market despite the more punitive tax regime. It’s essential therefore that we help to support a well-served market.”