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Paragon launches portfolio mortgages for buy-to-let landlords in Scotland

  • Paragon extends portfolio mortgage products to Scottish market
  • Products suitable for limited company landlords, HMOs and multi-unit blocks
  • Portfolio product range designed for landlords with four or more mortgaged properties

Paragon, the UK challenger bank and specialist buy-to-let lender, is expanding its buy-to-let mortgage offering in Scotland to include mortgage products for portfolio landlords.

Available in Scotland from today, Paragon’s portfolio range is designed for landlords with four or more mortgaged properties, as well as those operating in limited companies and limited liability partnerships.

The portfolio range can be used to finance single self-contained units (SSC), houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), with products available for purchase as well as remortgage.

Paragon has offered a limited range of buy-to-let mortgage products in Scotland for some time and today’s move adds a new layer of products suitable for landlords with larger and more complex portfolios.

Following the introduction of the Prudential Regulation Authority’s (PRA’s) detailed underwriting rules for portfolio landlords at the end of 2017, several lenders have chosen to focus solely on the non-portfolio segment of the market or to limit the scope of their portfolio products.

Paragon’s portfolio range has enjoyed strong success in England and Wales and the Scottish launch offers an opportunity to extend competition and choice for intermediaries and landlords operating in the portfolio segment north of the Border.

Paragon plans to announce a new Regional Sales Manager dedicated to the Scottish market in the near future.

The Private Rented Sector (PRS) in Scotland has more than doubled in size since 1999, and now accounts for more than a seventh of all homes in Scotland. It is estimated that the number of private rented properties in Scotland has increased from 224,000 in 2006 to 394,000 in 2016.1

John Heron, Director of Mortgages at Paragon said:

The introduction of the new PRA underwriting rules for portfolio landlords has impacted the buy-to-let market across the UK and we’re delighted to extend our portfolio range into the Scottish market.

Demand for portfolio lending is on the increase in Scotland and with fewer lenders choosing to offer suitable products for this segment, we have a unique opportunity to bring improved choice and competition for those looking to invest.
1: Private Sector Rent Statistics, Scotland, 2010 to 2017, Appendix A – Scottish Government

11 July 2018

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551