Paragon launches new product range and changes criteria

Paragon Mortgages has lowered its rental income requirement and launched a new range of products.

The lender is reducing its rental income requirement for single unit properties from a previous calculation of 130% at 7% down to 125% at 5%.

Its calculation for houses in multiple occupation and multi-unit properties remains at 130% at 7%.

A spokeswoman for the lender says this change has been made in order to make its offering more competitive and flexible for landlords.

Furthermore, Paragon Mortgages’ sister company Mortgage Trust is scrapping its minimum income requirement, which was previously £40,000 a year.

Paragon Mortgages’ minimum income requirement remains at a combined annual income of £25,000.

In addition, Paragon Mortgages is launching a suite of 44 products today, with another six products being launched under the Mortgage Trust brand.

John Heron, managing director of Paragon Mortgages, says: “The new mix of products has been created to enable intermediaries to offer their landlord clients a flexible and open approach when looking for a buy-to-let mortgage.

“I would encourage intermediaries not to shy away from approaching us if they receive a more complex or unusual request from a professional landlord as we have specific expertise in dealing with complex buy-to-let property purchases.”

Paragon Mortgages is also removing its product fee of 0.25% for limited companies, HMOs and multi-unit properties.