It was announced yesterday that Paragon, the Buy to Let lender will be opening its doors again to new mortgage business. Paragon stopped any new mortgage lending in the wake of the credit crisis but always indicated that it fully intended to make a return to market when the time was right. It has secured a £200m line of warehouse funding and will retain its focus on the professional Buy to Let landlord. Paragon was always a specialist in this area and the intention is to be able to offer lending on Houses in Multiple Occupancy (HMO) and to limited companies, areas not always well served by other lenders. Having Paragon back in the market will come as a boost having been such a solid and specialised Buy to Let brand. This will hopefully bring more competition to a much more restricted market and also some much needed options for those with larger Buy to Let holdings. Although products have generally been improving it remains a tough market and in some cases criteria has continued to tighten. For example only last week Lloyds Banking Group limited the total level of lending and number of investment properties allowable across the group. New options like Paragon will be vital in maintaining more choice and options for landlords. Earlier in the year, new lenders Aldermore Bank and Precise Mortgages entered the Buy to Let market.
Lender re-enters the Buy to Let Market