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Paragon launches 70% LTV buy-to-let fixed rate deals

Paragon Bank has launched a range of 70% loan-to-value (LTV) two and 5-year fixed rate deals.

The specialist buy-to-let mortgage lender has launched new 70% LTV products for both portfolio and non-portfolio landlords across single self-contained (SSC) properties and Houses in Multiple Occupation (HMOs).

The 70% LTV range starts from 2.95% for a 2-year fixed rate for SSC properties, and all products are offered with no valuation fee.

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The products are available for purchase and remortgage and complement Paragon’s existing 75% LTV product offering.

Moray Hulme, Paragon director of mortgage sales, said: “These new products offer landlords more choice at a time when product availability more broadly has been constrained and will suit landlords with greater levels of equity to invest.

“Demand remains robust for both new purchase and remortgage activity, despite the current difficult conditions.”

Paragon has been adding to its product range over the past few weeks. At the beginning of May it launched a market-first Discounted SVR product to support landlords through a period of uncertainty.

By Ryan Fowler

Source: Mortgage Introducer

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85% of buy-to-let lenders still lending

Some 42 of the 49 buy-to-let lenders operating at the beginning of March are still lending despite the impact of coronavirus, analysis from Mortgages for Business shows.

Together Money and Vida Homeloans have both pulled out of the market, while HSBC is no longer accepting buy-to-let applications.

However Santander, Clydesdale, Precise Mortgages and Kent Reliance have now restarted lending, after initially taking a step back.

Shawbrook and Paragon meanwhile are using virtual valuations against standard properties up to 75% loan-to-value.

Steve Olejnik, managing director of Mortgages for Business said: “Lenders have cut down the sorts of landlords that they will lend to.

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“They’re pulling product ranges, tighten lending criteria, and increasing margins. But different lenders are derisking against different kinds of landlord borrowers. So, while some lenders are no longer lending to first time landlords, there are still lenders who are.

“My advice to landlords looking to remortgage is act sooner, rather than later. You may have to answer a few more questions when you’re applying for a remortgage that you would have had to last month – but a broker will still be able to find you a deal.”

Saffron Building Society withdrew from the market before the outbreak in March, though the lender has indicated that it will return to the market later in the year.

Lenders that have stopped lending to landlords since include: HSBC; Foundation Home Loans; Together Money; Vida Home Loans; Platform Home Loans; State Bank of India; and Furness Building Society.

BY RYAN BEMBRIDGE

Source: Property Wire

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Barclays issues payment holidays for BTL customers

Barclays will now allow buy-to-let mortgage customers to request a mortgage payment holiday.

BTL borrowers can now apply for a mortgage holiday through an online form on the lender’s website.

Furthermore, the bank said customers could access additional information on repayment holidays through its dedicated coronavirus hub.

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Last week, Barclays said it would not be offering BTL borrowers the option of a repayment holiday.

The mortgage holiday repayment initiative, which was first announced by Chancellor Rishi Sunak two weeks ago, has seen lenders across the country alter their policy criteria and implement three month repayment holidays for customers.

By Jake Carter

Source: Mortgage Introducer

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More UK women investing in buy-to-let properties

The number of women investing in buy-to-let properties in the UK has increased slightly to almost half the total, a new study has found.

Women now account for 47% of the 2.5 million buy-to-let investors in the UK up from 46% the year before, narrowing the gender gap in the investment class, according to the research by London estate agents Ludlowthompson.

The number of female residential property landlords rose by 5% to 1.2 million for the 2016/17 tax year, up from 1.1 million the previous year, according to the latest available HMRC data.

The narrowing of the gender gap in buy-to-let investment reflects how property has become an increasingly popular investment among women Ludlowthompson said.

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The company cited research from Kings College London that suggests that women are generally less likely to make high-risk investments. The relatively transparent business model, regular pay-outs, and low price volatility associated with buy-to-let property as opposed to shares has contributed to the rise in popularity of the asset class among women.

The narrowing of the gender gap among buy-to-let investors stands in contrast to the gender split across other asset classes such as cryptocurrency where women represent just 8.5% of investments, and stocks and shares ISAs where women account for only 43%, owning 957,000 shares ISAs compared with 1.2 million men.

Stephen Ludlow, chairman of Ludlowthompson, said: “The buy-to-let sector has a reputation of providing stable, long-term returns. Whilst some investors have become distracted by more speculative investments, buy-to-let continues to build increasing interest amongst investors who value income and long-term growth.

“It may not be long before we see a 50/50 gender split amongst buy-to-let investors, which is significant given the much wider gaps in other asset classes, such as equities.”

By Kalila Sangster

Source: Yahoo News UK