Compare Criteria

Paragon

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

£75,000. £100,00 for HMO's up to 10 beds. £150,000 for 11 + bed HMO's. Multi-Units - Min Val for; 2 -10 units is £100,000 11 - 20 units is £150,000

Advance (min)

£30,000

Advance (max)

£2,000,000 to 65% LTV
£1,000,000 to 70% LTV
£750,000 to 75% LTV
£500,000 to 80% LTV - Forward Funding Facility Now Available

Term (Max)

25 years

Minimum Age

21 years

Maximum Age

80 years old - up to 85 years old by exception only.

Family Cash Gift Deposit

Yes

Family Gift of Equity Deposit

No

Income (min)

£25,000 minimum
Paragon can consider retained profit as long as the business does not required it for continued business. Such as an antique dealer.

Restrictions

No restriction on other mortgages with other lenders.
Maximum of £10,000,000 of lending with Paragon (Both Mortgages and Exclusives).
Studio flats - minimum 30sqm
Paragon no longer require a floating charge on all portfolio applications for limited companies, (required if purchasing / remo in Scotland) incorporated solely for the activity of holding and letting residential properties.

Let to Buy (Turning Residential into Buy to Let)

Yes

DWP Tenants

Yes

Ex-Local Authority Properties

Yes - Refer

Minimum years remaining on leasehold property

Minimum years remaining on a leasehold property 85 years at the start of the mortgage with at least 65 years remaining at the end of the term of the mortgage. Can consider a lower lease if this is to be extended on completion.

Minimum Ownership

No restriction - refer.
Applicant / Company must own the property if it is a mortgage.

Permanent rights to reside and remain

Yes

Ex-Patriates

Yes
Up to 70% LTV - max loan of £750,000
Up to 65% LTV - max loan of £1,000,000
Any fees that may be added to the loan are excluded from the LTV calculation

Affordability
All calculations will be based on either the current reference rate published on our website, or the product
charging rate plus 2%, whichever is the greater.
The affordability will be assessed as follows:
• For individual and joint applicants and for limited liability partnerships (LLPs) with expatriate members, the
gross rental income should be equal to, or exceed, the Interest Coverage Ratio (ICR) of 140%.
• For limited company applications, the gross rental income should be equal to, or exceed, the ICR of 130%

Applicant type: Expatriate applicants and LLP’s with expatriate members 140%
Limited company with expatriate directors 130%
Single self-contained units only with no restrictive covenants in place.
The services of a managing agent must be engaged to oversee the property, and details of the agent must be provided prior to completion of the loan.
For purchase applications, proof of the source of deposit will be required in all instances.

Applications will be considered from limited companies / LLPs registered and trading in England, Wales or Scotland and whose directors /members are expatriates.
• All applicants must have held a UK bank account for a minimum of three years.
• All applicants must provide a certified copy of their current UK passport, together with three separate proof of residency documents.
• A UK credit search will be undertaken wherever possible. Applications will not be considered where there is evidence of poor credit history.
• There is no minimum income requirement, but applicants must provide details of all income.
• All employment statuses are accepted and full details must be provided as part of the application.
• We cannot accept applications that qualify as Consumer buy-to-let from expatriate applicants.

Applications will be considered for Expatriates, who must hold a current UK passport and are residing outside of the UK in one of the following countries:
Austria
Belgium
Bulgaria
Canada
Cyprus
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Kingdom of the Netherlands
Luxembourg
Malta
New Zealand
Norway
Poland
Portugal
Singapore
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
United States

New Builds

Yes

Credit Score

Yes - Equifax

Rental Calculation

Limited Company: –
*******
Lower Rate Tax Payer: –
***********
Higher Rate Tax Payer: –
***********
Paragon HMO: –
Ltd Co:

Lower Rate Tax Payer: –

Higher Rate Tax Payer: –

Historic CCJ’s & Defaults

A comprehensive review of the credit history for each applicant will be undertaken, which will include a credit search on all applicants.

Paragon will undertake a credit score in order to ascertain the acceptability of the application and will not normally consider any application where there is evidence of poor credit history, such as defaults or arrears on any loan.

Paragon will not consider applications with historic or current county court judgments.

The lender reserves the right to obtain a new credit search at any time and any change in the applicants credit history could lead to the application being reviewed.

Valuation Fees

Paid direct to lender at the lender fee scales

Maximum number of applicants

4

Countries

Will lend in England, Scotland and Wales

Access

Access to Paragon is available via selected packagers only

Missed mortgage payments

None with last 24 months.

Property Type / Commercial

Standard BTL investment properties such as a house or Flat
Multi Units
HMO's
Student Lets
Studio Flats @ 30sqm
AirBnb - considered
Holiday Let - considered
Short Term Let - considered

Location

Will lend in England and Wales

Type of Credit Search conducted at AIP stage

Hard foot print at DIP/AIP stage

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– No maximum LTV for the overall portfolio
– No minimum rental stress requirements

Portfolio Landlord Criteria

– Aggregate borrowing of £10m (Paragon Exclusives) & £5m (Paragon Core)
– No limit on the size of existing portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases
– Business Plan – Case by case
– Asset & Liability Statement – Case by case
– Cashflow Statement – Case by case
* Lender will accept client versions for all documents
NB – Portfolio assessment will be valid for 6 months when using the Paragon Bank Forward Funding Facility Subsequent Application

Paragon Bank Forward Funding Facility Information Sheet