Lender re-enters the market!

Good news this week! One lender who stepped back from new business lending back in February 2008 is lending again. Paragon Mortgages were renowned specialists in the buy to let arena with professional landlords, houses of multiple occupancy and properties in limited company names. Their re-emergence in the market is positive news, especially for landlords with an established portfolio of properties. Paragon offer a non credit scoring approach to prudent lending, design their products to attract experienced landlords and, even better news, they are initially launching through a limited panel of distributors including AToM.

In the residential market, remortgage applications appear to be on the increase. Borrowers tend to be looking to secure long term fixed rates. Others are releasing equity to acquire Buy to Let properties in the current cheaper climate or releasing funds to help siblings step on to the increasingly tough property ladder. Whatever the reason, make sure you do your homework. As we move in to the final quarter of the year, some lenders will be looking to end the year on a high and attract volume business. There are some great rates available to cater for all requirements, whether you require a fixed rate, tracker/discounted, or a capped rate, etc.

I’ve said this before, but it needs constant review. If you have plans to apply for a mortgage in the not too distant future, keep your eye on your credit. Don’t miss or make late payments to any provider. All financial institutions will base their decision initially on your credit history. If you have missed or late payments, or even a lot of recent searches (from multiple finance/mobile/car/home insurance applications), this could be detrimental to your ability to obtain finance, at a competitive rate. If you have not reviewed your credit search before, get it for free (30day trial period) from Credit Expert (see www.atomltd.co.uk for a link). It’s well worth a review and a good insight on how attractive you may, or may not, look to a lender.