Paragon Bank has strengthened its buy-to-let mortgage further advance proposition, streamlining the application process and reducing the minimum loan size to £2,000 and rates by 20bps.
oneyWhere no property inspection is required, the move enables Paragon to issue offers in as little as 48 hours and means landlords can receive funds within 24 hours of the lender receiving a signed offer acceptance.
The further advance proposition will use automated valuation models alongside other data sources to reduce the requirement for in-person revaluations.
Additionally, Paragon has taken 20bps off its range of further advance products.
Rates now start at 6.25% for five-year fixed-rate mortgages, available at up to 75% loan-to-value (LTV) for single self-contained (SSC) properties. Two-year fixes are also available, with rates starting at 6.40%, and the equivalent products are available for HMOs and MUBs too, priced 20bps higher than the SSC loans.
Paragon expects further advance loans to grow in demand as home providers prepare for forthcoming changes to minimum EPC requirements for rental property.
Its data shows that approximately 40% of its further advance loans are currently taken out to fund property improvement work.
And the Cambridge Building Society is introducing a new Limited Company Buy to Let Holiday Let mortgage to complement its current Limited Company Buy to Let offering.
The society’s Buy to Let range already includes standard Buy to Let, Holiday Let and expatriate lending at 80% loan to value.
The new product is a 5-year fixed rate available to 80% loan to value with a rate of 5.78% and an income coverage ratio of 125% at payrate, ensuring increased choice at higher LTV levels for Limited Company borrowers.
A spokesperson says: “The launch of our new Limited Company Buy to Let product at 80% LTV strengthens our landlord proposition and gives brokers greater flexibility when supporting incorporated investors, while continuing to reflect our commitment to responsible lending – working together to help people achieve their goals.”
This article is taken from Landlord Today