Paragon Bank increases buy-to-let maximum loan limits

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Paragon Bank has increased its maximum loan limits across its range of buy-to-let mortgages, as well as removing minimum income requirements for portfolio landlords, to provide further support and flexibility to landlords.

Russell Anderson (main picture), Paragon Bank Mortgages commercial director, said: “These new maximum loan limits deliver more flexibility to our customers, enabling them to target a wider range of buy-to-let propositions.

“This year has been busy, with the launch of our mortgage origination platform, streamlined application process for simple cases, our new multi-property proposition and now these latest changes.

“This is just the start. We have further exciting product innovations up our sleeve that we are excited to launch in the coming months. We celebrated 30 years in buy-to-let this year and we continue to evolve to benefit landlord and broker partners.”

The changes to maximum loan limits include:
  • Up to £800,000 at 80% LTV, up from £750,000
  • Up to £1.2 million at 75% LTV, up from £1 million
  • Up to £1.7 million at 70% LTV, up from £1.5 million

For individuals with three or fewer mortgaged buy-to-let properties, Paragon has introduced a new maximum loan of up to £2 million at 65% LTV.

For individuals with four or more mortgaged buy-to-let properties, limited companies and applications for HMOs or multi-unit blocks, the maximum for 65% LTV remains unchanged at £4 million.

Paragon has also removed the minimum income requirement for landlords who own four or more buy-to-let properties. This was previously £25,000.

These latest changes form part of Paragon’s evolution of product and proposition following the launch of its new bespoke mortgage origination platform earlier this year.

These include the introduction of a streamlined application process for landlords with 15 properties or fewer and the launch of its multi-property proposition in November, with up to 99 properties per application and a number of benefits including one ILA certificate for the whole application, designed to make portfolio growth simpler, faster, and more efficient.

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