More buy-to-let mortgages now available
Saturday 18 June 2016
Opportunities for landlords looking to expand their portfolios are on the rise as a new range of BTL mortgages is unveiled.
Paragon Mortgages offers six new mortgage deals which aim to cater for limited companies as well as individuals.
The deals are intended to help landlords and companies compete against an increasingly hostile background - as the effects of George Osborne’s attacks on the industry (like the scrapping of mortgage interest relief and wear and tear allowance) make themselves felt over the coming years.
The new selection includes two year fixed rate products starting at 3.40% with a 1.5% product fee, at 65% loan-to-value ratio (LTV) for single, self contained units.
Another two year fix at 3.75% has also been introduced, with a 1.5% product fee at 65% LTV available for Houses of Multiple Occupation (HMO) and multi-unit blocks.
There are three new five-year fixes, with rates starting at 4.20% with a 1.5% product fee also at 65% LTV for single self-contained properties – and these products are intended for both individual landlords and limited companies.
Paragon has also introduced a range of stepped fixed-rate products, which last for a five-year period, and either increase in rate each year until the end of the product term, or decrease, according to the landlord’s preference.
More flexibility with financial planning
The stepped-rate products have been introduced to give landlords more flexibility with their financial planning.
With tax liabilities set to increase for landlords from April 2017, a stepped rate product which descends from a higher rate to a lower rate could help landlords prepare for a potential hike in their tax bill.
Intermediaries are advised to make sure their clients understand how these products work and whether they will be suitable.
Following on from April’s dispiriting increase in Stamp Duty surcharge, the arrival of these products is bound to boost confidence in the BTL sector.
And the range of new deals now on the table, emphasizes that plenty of opportunities are still out there for landlords of every type, waiting to be collected.
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