Paragon Bank, the specialist lender, has doubled the maximum loan amount available to portfolio landlords, those with four or more mortgaged buy-to-let properties. This refers to both the loan amount on an individual property and the total BTL borrowing limit within the company.
Portfolio landlords can now borrow £10 million across their portfolio with Paragon (previously the limit was £5 million) and £4 million on an individual property (previously £2 million).
The lender has also increased maximum loan amounts across several LTV bands. These increases are for both portfolio and non-portfolio landlords. Landlords now have the option to borrow £750,000 at 80% LTV, £1 million at 75% LTV, £1.5 million at 70% LTV, and a maximum of £4 million up to 65% LTV with Paragon.
Richard Rowntree, managing director of mortgages at Paragon Bank, 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.”
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