Paragon adds switch and further advance products

Jake Carter

January 5, 2022

Paragon has launched switch and further advance products for portfolio and non-portfolio landlords, which are suitable for individuals and limited companies.

Across both portfolio and non-portfolio ranges, rates start at 2.95% for landlords looking to switch to a new product, while further advance fixed rates start at 3.40%.

These products are available for individual portfolio landlords as well as those operating as limited companies or limited liability partnerships.

The products are suitable for financing single self-contained properties (SSC), houses in multiple occupation (HMOs) and multi-unit blocks (MUB).

The non-portfolio range is available consumer buy-to-let (BTL) customers on SSCs.

Landlords can choose from a range of 2 and 5-year term products, some of which feature zero product and application fees as well as free mortgage valuations.

All products include an interest coverage ratio (ICR) starting at 4.00% and are subject to early repayment charges (ERCs) of 5% in years one and two, 4% during years three and four and 3% for year five.

Moray Hulme, director for mortgage sales at Paragon, said: “The PRA’s introduction of new underwriting standards in 2017 led to a substantial increase in the number of 5-year fixed rate mortgages written between December 2016 and January 2018.

“We’ve launched a new range of keenly priced switch products to cater to the wave of landlords who will have loans reaching maturity in 2022.

“In addition, we know that there is a growing number of landlords who are looking to make their properties more energy efficient or are thinking about expanding their portfolios, perhaps taking on somewhere that requires some work to bring up to a good standard.

“Our further advance products are perfect in these types of scenarios, so we’re pleased to be able to support investment in improving the quality and quantity of private rented sector stock.”

Sign up to our daily email