News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the February / March 2000 issue RPI news archive

Paragon launches buy to let tracker - February / March 2000

Paragon Advance, with whom Residential Property Investor has linked up to gain buy to let mortgage data, has launched its own exclusive products.

Advance 525 is a base rate tracker arranged through The Woolwich which provides finance at 1.15 per cent over base rate for five years, reverting to 1.40 per cent guaranteed margin thereafter.

This is offered in association with a Woolwich flexible mortgage of the landlord's own home, which allows a flexible draw down facility of up to 90 per cent of the property value to be used in portfolio development.

The buy to let Advance 525 facility requires 125 per cent rental cover of interest. Limited companies are accepted and maximum amounts limited to £1m.

Paragon also has a flexible commercial loan arrangement with a major clearing bank that allows landlords with sound credit rating and a minimum of three rented properties to borrow between £100,000 and £10m for property investment.

'The main advantages are the acceptance of properties which other lenders reject, the interest rate which will normally be between 1.5 per cent and 2.5 per cent over bank base, and the fact that it is a portfolio loan', Paragon's Roy Chadwick told RPI. 'The disadvantages are that 200 per cent loan interest is likely to be sought as rental level across the portfolio, repayments will usually need to reflect a 15 year loan (although interest-only periods are possible) and the maximum loan to value will usually be 70 per cent.
 

other artilces from the February / March 2000 issue

• Housing mismanagement
• BPF backs research into regulation
• Squatters' rights defy natural justice
• Leasehold reforms outlined to Commons
• In brief
• Paragon launches buy to let tracker
• Buy to let guidance