Paragon returns to BTL mortgage market, with new Securitised Mortgage Funding.

shupufski_2

Products include two year fixes at 5.5%, at 75% LTV and 5.3%, at 65% LTV. The deals have 2.25% and 2% fees respectively.
There are also two-year trackers at 4.30%, at 65% LTV, and 4.80%, at 75% LTV, with 2% and 2.25% fees respectively.
Five year trackers are available at 4.55%, at 65% LTV, with a 2% fee and 5.05%, at 75% LTV with a 2.25% fee.


I think the key to this article is shown above. Obviously someone has got to lend to private rental sector, and rightly so.

However, these loan offers could not be described as supportive of the non-professional landlord. High levels of equity are required and set up fees are pretty high.

I suspect these are aimed at long term players in the market or those that joined the party early.

This, coupled with the limited fund value, is hardly a game changer and will not attract significnt numbers of new entrants.

chucky

shupufski wrote: »

Products include two year fixes at 5.5%, at 75% LTV and 5.3%, at 65% LTV. The deals have 2.25% and 2% fees respectively.
There are also two-year trackers at 4.30%, at 65% LTV, and 4.80%, at 75% LTV, with 2% and 2.25% fees respectively.
Five year trackers are available at 4.55%, at 65% LTV, with a 2% fee and 5.05%, at 75% LTV with a 2.25% fee.


I think the key to this article is shown above. Obviously someone has got to lend to private rental sector, and rightly so.

However, these loan offers could not be described as supportive of the non-professional landlord. High levels of equity are required and set up fees are pretty high.

I suspect these are aimed at long term players in the market or those that joined the party early.

This, coupled with the limited fund value, is hardly a game changer and will not attract significnt numbers of new entrants.

the rates are rubbish but that's a far cry from people thinking that BTL lending is dead

Emy1501

Someone will find it difficult to make these figures work on a 25% deposit especially when you take into account the 2% fees and then add on agent fees etc. I also suspect the lender will want a rental figure of 125-135% of the mortgage.

On top of the above I can imagine what the SVR is once the mortgage finishes and then you got think of rate rises even if they are small.

In my opinion BTL is pretty much finished for those with a deposit of less than 40%.

abaxas

Obviously, a small back street lender is nice to have, but keep the celebrations until the big boys return?

It's a bit like saying Barry's pies has opened one retail outlet when greggs have 100's.

Thrugelmir

Conrad wrote: »

'The number of accounts more than three months in arrears across Paragon’s portfolio of buy-to-let assets has continued to fall and is currently just 0.86% of the book.'

Probably helped by the fact they haven't lent any new money since February 2008.

£200 million of funding isn't going to kickstart the market either.

Particularly on a day that LloydsHBOS cuts the number of BTL properties that can be held from 9 to 3.

robmatic

Products include two year fixes at 5.5%, at 75% LTV and 5.3%, at 65% LTV. The deals have 2.25% and 2% fees respectively.
There are also two-year trackers at 4.30%, at 65% LTV, and 4.80%, at 75% LTV, with 2% and 2.25% fees respectively.
Five year trackers are available at 4.55%, at 65% LTV, with a 2% fee and 5.05%, at 75% LTV with a 2.25% fee.

Jeez. Gross rental yields are under 5% in my local area (central Edinburgh)... excuse me while I go give up my day job.

System

abaxas wrote: »

Obviously, a small back street lender is nice to have, but keep the celebrations until the big boys return?

It's a bit like saying Barry's pies has opened one retail outlet when greggs have 100's.

One of the biggest BTL lenders during the boom. Please, for the good of the forum, get a clue, and then post.

abaxas

Joeskeppi wrote: »

One of the biggest BTL lenders during the boom. Please, for the good of the forum, get a clue, and then post.

I'm sorry but a few billion a year in churn is chicken feed.

In reality they lent very little, they were (like most packagers) a churn operation. Ie designed to skim fees rather than actually providing financial services.

Maybe if you had worked in the industry......you would have known.

neverdespairgirl

shupufski wrote: »

Products include two year fixes at 5.5%, at 75% LTV and 5.3%, at 65% LTV. The deals have 2.25% and 2% fees respectively.

Compared with the equivalent residential rates, those are horrible.

chucknorris

neverdespairgirl wrote: »

Compared with the equivalent residential rates, those are horrible.

A few weeks ago we were looking at btl rates, it didn't take us long to realize that remortgaging our own (unmortgaged) house was the much better option, to take advantage of the better rates on offer.

However we have now decided not to invest further anyway for non financial reasons, as we are entering a period in our lives when we should be focusing on enjoyment not further business investmenta (investments that requires time and effort I mean).