Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Cambridge BS Launches Limited Company BTL Holiday Let; Paragon Updates BTL Advances

Cambridge Building Society has launched a limited company buy-to-let (BTL) holiday let mortgage at 80% loan to value (LTV). Paragon Bank has streamlined its BTL further advance process, lowered the minimum loan size, and reduced rates.

The Cambridge Building Society’s new product is a five-year fixed rate mortgage priced at 5.78%, with an income coverage ratio (ICR) of 125% at payrate. This addition broadens the mutual’s limited company BTL offering, which already includes standard BTL, holiday let, and expat options at 80% LTV. The lender stated that this launch demonstrates its commitment to the BTL sector.

Paragon Bank has updated its BTL further advance proposition by simplifying the application process, reducing the minimum loan size to £2,000, and cutting rates by 0.2%. The lender is moving further advances onto its enhanced mortgage originations platform, aiming to provide a streamlined journey for brokers and landlords. Where no property inspection is required, Paragon can issue offers within 48 hours, using automated valuation models (AVMs) and data sources to minimise the need for in-person revaluations.

Paragon’s rate cuts mean five-year fixed rates now start at 6.25% up to 75% LTV for single self-contained properties, and two-year fixed rates start at 6.4%. The range also includes products for houses in multiple occupation (HMO) and multi-unit block (MUB) properties. Paragon noted that around 40% of further advance loans are used to fund property improvements, and expects demand to grow due to minimum energy-efficiency requirements for rental properties.

These developments may be relevant for letting agents and inventory clerks monitoring mortgage product changes that could impact landlord clients and property investment activity.