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Are you an existing buy-to-let landlord who owns a range of complex multi-unit blocks of flats (MUFB) or houses of multiple occupations (HMOs) within your portfolio that need refinancing?
Alternatively, do you want to start investing in these property types but are concerned that this type of borrowing could be too expensive, or not feasible compared to the finance available on a standard house or flat?
I can confirm that is not the case thanks to Paragon Bank – a specialist buy-to-let lender whose drive and desire is to lend on these property types, no matter how unique the property may be.
Large HMOs (Sui Generis – 7 beds plus) and MUFBs are considered commercial assets with the majority of specialist buy-to-let lenders – with these asset types come valuation costs in excess of £1,000, arrangement fees of 1.5-2% and higher fixed rates compared to their standard product range.
Free commercial valuations, fixed arrangement fees and market-leading rates
However, there is a lender who offers free commercial valuations, fixed arrangement fees and market-leading rates for this asset class, with said rates being in line with the products that they also offer for their standard property range. Paragon Bank is your answer.
On top of the above, their quick turnaround times and efficient application processes make Paragon Bank easy to deal with. They can take deals from submission to mortgage offer within 2-4 weeks, which on a complex property is just another string to their bow.
Case Study
£1,100,000 Limited Company purchase of a MUFB consisting of 12 flats on one legal title
£825,000 loan size – 75% Loan To Value
3.13% 5-year fixed with a £5,000 arrangement fee added to the loan
£299 application fee with a free valuation
This is just one fantastic example as to why other lenders can’t compete with the offering that Paragon can provide on the large loan / complex property deals. As a percentage of the loan, the £5,000 arrangement fee works out at 0.6% – as previously mentioned, the majority of other lenders that would be able to provide a mortgage on this would add a fee to the loan of £12,375 – £16,500 (1.5-2%). Furthermore, these lenders would require an upfront £1,500 valuation fee to proceed. Just in those two factors alone, you are saving at least £13,000 on fees with Paragon.
Why not let us assist you with the financing of Multi-Unit blocks of flats and large HMOs? We can match the obvious attractions of higher rental incomes to investors that are party to these assets with incredibly competitive finance! Making it a win-win solution for our clients. For more information on this please get in touch to find out about the options available to you.
How can Advocate Finance help you?
We have a fantastic working relationship with Paragon. As we have excellent contacts within the bank, we can talk through specific deals and requirements with them. This has enabled us to achieve out-of-criteria exceptions on cases that wouldn’t normally be something Paragon would accept. This further supports their proposition, as flexibility with a lender can often be the difference between a deal going ahead or it falling out of favour.
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