Paragon and MT offer buy-to-let SIPP mortgages

Paragon Mortgages and Mortgage Trust are offering intermediaries tailor-made self invested personal pension mortgage products for buy-to-let investors.

The lenders are inviting intermediaries to join a select panel that will introduce the range.

The products are in response to a recent survey by Mortgage Trust that found 65% of mortgage intermediaries expect the introduction of residential property investment SIPPs will boost the buy-to-let market.

Specifically, products will allow a pension trust to borrow up to 80% of the value of the property in the scheme. Services will enable Paragon customers to establish and maintain a SIPP vehicle and will provide tailored information and help for buy-to-let SIPP investors.

John Heron, director of mortgages at Paragon, says: “We have been working on this initiative for over two years. It is clear to us that this is not just another buy-to-let product.

“There are significant new challenges and issues as well as opportunities for investors, intermediaries and lenders. We want to be sure that SIPP customers are professionally advised by intermediaries who are fully up to speed on this new initiative.

“For this reason, buy-to-let SIPP mortgages will only be available through intermediaries who have registered with Paragon Mortgages and Mortgage Trust and have access to all the information we will be publishing on SIPPs and lending products over the coming weeks.”