Paragon expands buy-to-let mortgages for expats

Michael Lloyd

November 5, 2018

Paragon has expanded its buy-to-let mortgage range to include mortgages for expat landlords with rental property in the UK and for UK holiday lets.

Mortgages for expat landlords are available at loan-to-value ratios up to 70% for loan amounts up to a maximum of £750,000 and at LTVs up to 65% for loan amounts up to a maximum of £1m.

Mortgages for holiday lets are available up to a 70% LTV for loan amounts up to a maximum of £500,000.

John Heron, managing director of Mortgages at Paragon, said: “We are really pleased with these product changes and hope that they will be received well by our intermediary partners.

“We have looked very carefully at the customer journey for expat buy-to-let landlords and have identified a number of areas where we think it can be simplified and improved.

“Similarly, with our holiday let criteria we are recognising how landlord strategies can change in the face of a more fluid rental market.”

All of Paragon’s new products are available via mortgage intermediaries for individual and limited company landlords with single, self-contained units.

Paragon’s expat mortgages can be used by landlords based in over 30 overseas countries to finance property in the UK. Landlords must hold a current UK passport, have held a UK bank account for at least three years and use a managing agent.

Paragon’s holiday let mortgages can be assessed on Assured Shorthold Tenancy (AST) rental income or proven, historic holiday let income.

Expat landlords and holiday lets represent growing segments of the UK buy-to-let mortgage market.

Although the expat market is difficult to size, according to statistics from the United Nations, there were 4.9 million UK-born emigrants in 2017.

The majority of British expats are based in English speaking destinations, with 33% of the total heading to the southern hemisphere and 28% opting for North America.

Just over one quarter (26%) of British expats live in the EU, and growing numbers of expat landlords are also based in the Middle East and Singapore – areas with modest taxes and relatively high wages.

In terms of holiday lets, Visit Britain recorded a 6% increase in domestic overnight holiday trips to 59.1 million in 2017 and international holiday visits also increased 11% to 15.4 million. Good summer weather and a weaker pound are expected to drive further growth in 2018.

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