Paragon Bank has made changes to support the growth of portfolio landlord customers, including doubling both the maximum loan amount on an individual property and the total buy-to-let borrowing limit with the company.
The total amount portfolio landlord customers can borrow with Paragon across their portfolio has increased from £5 million to £10 million, whilst the maximum loan on an individual property has risen from £2 million to £4 million.
In addition, the maximum loan amount has increased across several loan-to-value bands for both portfolio and non-portfolio landlords. These include:
- 80% LTV – from £500,000 to £750,000
- 75% LTV – from £750,000 to £1 million
- 70% LTV – from £1 million to £1.5 million
- 65% LTV – from £2 million to £4 million
Paragon has made the changes to further support landlords as they grow their portfolios, whilst also rebalancing them towards larger properties to reflect changing tenant demand. The move also reflects on the growth in property values over the past year.
The bank defines a portfolio landlord as an individual with four or more mortgaged buy-to-let properties.
Richard Rowntree (pictured), Paragon Bank’s managing director of mortgages, said: “We want to ensure we can support our landlord customers as they grow their business and thrive. A key element of this is creating the financial headroom to facilitate that growth and giving landlords the confidence that they can add new properties to their portfolios.
“In addition, we want to support landlords as they pivot their portfolios to adjust for societal changes, such as increased levels of working from home and the desire for more space. That translates into greater demand for larger homes, which is one of the reasons why we have increased our maximum loan amount on an individual property. We’re confident these changes will be welcomed by landlords and mortgage intermediaries.”
