Paragon Bank said it will broaden its buy-to-let loan offering to include multiple occupation properties, catering to landlords who want to finance higher value purchases.
The Solihull-based firm said it will now sell a new 75 per cent loan-to-value product suitable for houses in multiple occupation and multi-unit blocks.
It will be available for loans between £350,000 and £1m, carrying an interest rate of 3.60 per cent, an APRC of 4.30 per cent and includes a free mortgage valuation. The loan comes with a £3,500 product fee and a £299 application fee, which is fixed regardless of the amount borrowed.
The move comes as the FTSE 250 business boosts its larger loan product range, as the roll out of vaccines for Covid-19 boosts confidence in the mortgage market.
Paragon launched a BTL loan product for single self-contained properties last month. This 75 per cent LTV loan has an interest rate of 3.50 per cent and includes a free mortgage valuation, and also has a fixed product fee of £3,500 and £299 application fee.
Paragon director of mortgage sales Moray Hulme said: “Following the success of the larger loan mortgage we launched in December last year, we’re extending our 75 per cent LTV larger loan range with a new product that is available for HMOs and multi-unit blocks.”
Hulme added: “We’re always looking for ways to provide brokers with competitive mortgages that meet the needs of landlords and we feel that this latest product caters particularly well to those who are developing their portfolios by adding higher value properties.”
The launch of approved vaccines to fight the pandemic has boosted the industry over recent weeks, with several lenders increasing LTV ratios in the residential BTL market.
Earlier this month Reading-based Fleet Mortgages cut prices across its five-year fixed-rate mortgage range. The BTL specialist lender has cut rates on its 60 per cent LTV products from 3.54 per cent to 3.49 per cent with a rental calculation of 125 per cent at 5.5 per cent.
In December, Landbay raised its LTV from 75 per cent to 80 per cent on two buy-to-let products taking its LTV ratios back to pre-lockdown levels.
