The decision to expand into this new product area is based on PML’s strong track record and experience in the residential investment market, as the UK’s only dedicated buy-to-let lender.
Commercial mortgages will be available against most types of non-specialist properties, including shops, offices, warehouses, light industrial buildings and mixed residential-commercial buildings.
At the outset, the majority of applicants are expected to comprise PML’s existing customer base of professional buy-to-let landlords, many of whom already have interests in the commercial property sector.
PML will offer competitive terms, loan-to-value limits and rental ratios, with LIBOR-linked pricing.
The mortgages will be launched through PML’s established panel of handpicked intermediaries, including specialist commercial finance brokers such as the members of the UK Commercial Funding Group (The Business Mortgage Company, based in Wales; Mortgages for Business, based in Sevenoaks; The Mortgage Centre, based in Norwich; and Professional and Commercial, based in Southampton).
John Heron, Managing Director of Paragon Mortgages said:
“Having been highly successful with our competitive range of residential buy-to-let mortgages, extending our product range to commercial property is a natural and logical diversification to meet the demands of our professional landlord client base, many of whom are already active in the commercial property sector. We believe there is good potential to build commercial buy-to-let into an important secondary business stream, to complement Paragon Mortgages’ well established residential business.”
Tony Finlayson, Chairman of the UK Commercial Funding Group, said:
“Paragon Mortgages’ excellent residential buy-to-let product range is being extended to include commercial buy-to-let loans. We believe that their pre-eminent position in residential and focus on the experienced property investor will make Paragon Mortgages an attractive choice for the commercial landlord.”
