Complex BTL business to rise next year ‒ Paragon

The lender noted research from BVA BDRC for the third quarter of this year, which found that the number of landlords expecting to purchase a property within a limited company structure has almost doubled in the last two years.

Paragon highlighted its own research which found that large scale landlords were three times more likely to consider buying than smaller scale landlords, and it predicted that brokers will refocus on buy-to-let purchases, given the rise in longer-term fixes since 2015 has reduced the opportunities to place remortgage business.

Moray Hulme (pictured), director of mortgage sales at Paragon, argued that landlords have had to be more “strategic” in recent years, which has led to a rise in portfolio and complex business. This has led to specialist lenders developing more tailored products for these borrowers, with mainstream lenders focusing their efforts on small-scale landlords.

He continued: “We also expect to see more tenant-friendly regulation in 2020, as the private rented sector continues to support a housing crisis caused by multiple factors, including population growth, limited investment in social housing, and tighter mortgage affordability. 

“All of this increased complexity and growing professionalism is good news for Paragon, as we head into the new year as one of the few specialist lenders with the capability to support complex buy-to-let mortgage requirements.”