Paragon Mortgages

Mortgages Direct are introducing Mortgage Brokers to Paragon Bank.

We are authorized by the Financial Conduct Authority. See our FCA registration here

(enter the registration number 303319)

No Broker Fees

Mortgages Direct are a whole of market Broker, so we can look at other lenders as well as Paragon Bank to find you the best deal.

We charge NO Broker fees, providing your mortgage is at least £100k.

Please note that generally Buy to let mortgages are not regulated by the FCA

We can deal with BOTH regulated and non-regulated lenders

—- Enter your mortgage Enquiry here ——-

Why use Paragon Bank

Paragon PLC are a major Buy to let lender in the UK

They lend against buy to let property located in England, Scotland and Wales

They are listed on the FTSE 250 Stock exchange and they will lend to small and very large Landlords

Paragon will lend in a wide range of circumstances.

They can consider applications for:

• Limited Companies
• HMO Landlords
• Multi Unit freeholds
• Light Refurbishment
• Heavy Refurbishment
• First time landlords
• Portfolio landlords

Applications can be considered  from up to two people for non-portfolio landlords (up to 3 x buy to lets)

One applicant must be employed or self employed and have a provable income of at least £25k

You will need deposit funds of at least 20%

Portfolio landlords (Those with 4 or more buy to lets) can have up to four applicants. At least one applicant should be a homeowner occupier

For multi-unit properties or HMO’s, Landlords should have at least 2 years letting experience

Part commercial properties are considered where the commercial floor space does not exceed 40% of total floor area

Check out Paragon lending criteria here

Limited Company Applications

Limited Company applications are acceptable.

There can be up to 4 Directors in the company

The company’s principal activity should be to hold and manage residential investment property.

Full personal guarantees will be required from the Directors

HMO Property

A property is a HMO if there are at least 3 Tenants living there forming more than one household and sharing facilities

You will need to take care that you have the necessary licenses and permissions as a Landlord.

Do NOT assume that just because you have been doing this a long time that the rules do not apply

Check with you Local Authority whether your property needs a HMO licence

Check with your Local Authority planning department if you need planning permission for your property in its current form.

Landlords must have a minimum of 2 years letting experience

The property condition must be suitable for letting in its current condition. Properties with low demand from Tenants due to poor condition will not be acceptable

Paragon are quite flexible over the Tenants and will accept Student and benefit recipients as well as lettings with a local authority or Housing Association

The property must have a minimum Energy Performance Certificate  (EPC) rating of E

Check your EPC rating here

For more detailed information regarding Houses in Multiple Occupation  please click here

Multi Unit Freehold

This covers Freehold property consisting of several self contained flats

Paragon will consider up to 20 self contained flats under on freehold title

Refurbishment Short term Loans

These loans are sometimes known as Bridging loans. This is short term financing intended for a term of up to 1 year, to be replaced by a long term mortgage.

There are frequently situations where a let property requires improvement works and Landlords need to borrow the cost of these works.

You can borrow money against the subject property or another property you own, but you will normally only be able to borrow up to 70 or 75% of the current value in its current condition

It might be that you are putting in a new kitchen and bathroom or you might be converting a property into a House in Multiple Occupation (HMO). If you are converting a property into a HMO, you will need to have all planning permissions in place at the time of application.

As these are short term loans typically between 1 and 12 months, there must be an exit strategy. A typical strategy might be to transfer the loan onto a long term buy to let mortgage with Paragon. There are some cost savings to be made if both loans are placed with the same lender

The long term (exit) mortgage will be based upon the rental income and property value for the improved property

Forward Funding facility

Professional Portfolio landlords can apply for a Forward funding facility which will agree a level of funding which might be useful where purchasing several properties in a short period

The forward funding facility is normally only valid for up to 6 months

Applications will still be subject to Survey and there will need to be sufficient rent to support the mortgage