It was interesting to hear that Paragon, which was one of the largest buy to let lenders during the housing boom, is returning to the market for the first time in 18 months.
Paragon has arranged a £200m facility provided by Macquarie Bank which gives Paragon the money it needs to write new loans up front. Paragon is being more cautious than it was in the past and is aiming for investors with a minimum deposit of 25%.
I think this is very good news as buy to let is such an important part of the Scottish housing market, and Dundee in particular, and competition is always welcome.
Should you require further information on the products offered then please do not hesitate to contact me or Blackadders Mortgages.
A recent survey by LSL Property Services reported that average rents in the UK have reached their highest level for 2 years, a statistic which matches my experience of the Dundee and Angus property market.
Mortgage funding for first time buyers continues to be difficult to come by, meanwhile parents are becoming less able to fund deposits of their children’s first property, the result is there are increasing numbers of people who are looking to lease property instead. A number of local property managers have indicated to me that they cannot get enough properties to meet the demand.
Readers of previous blogs will know my feeling that Dundee is a prime area for buy to let property investment and I am of the view that with the correct advice a buy to let investment can provide significant income return as well as the potential for capital appreciation. Whilst funding for buy to let investments, like all types of mortgage, is harder to come by, I was pleased to see a couple of new products coming into the market.
The fact that Dundee is a university city with a high tenant demand and comparatively low entry prices, means that it could once again be poised to reclaim its title of buy to let investment capital.