Specialist buy-to-let lender Paragon is launching a mortgage product as it returns to new lending.
Paragon said that the market was “underserved” and it will aim to tap into the houses in multiple occupation market along with multi-unit blocks and limited companies.
It has arranged a £200m funding facility with Australian bank Macquarie in order to kickstart its new lending programme.
It said that the market is dominated by just two lenders, and that the number of available buy-to-let products has fallen from more than 3,600 in July 2007 to 280 today.
In a trading update, Paragon said the number of accounts more than three months in arrears across its portfolio of buy-to-let assets fell to 0.86% of the book in the past year.
John Heron, Paragon Group’s director of mortgages, said: “We are really excited about our return to new lending. The market is still fairly subdued and the road back to a ‘normal’ market is going to be a long one, but we are back in the race, and we will do our level best to make sure that we expand the choices available in buy-to-let finance for landlords and intermediaries.
“Competition is vital for a healthy and vibrant buy-to-let market, and we aim to provide that competition. Supply of private rented sector property is already under severe strain, which is leading to rental inflation.”
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