Mortgage Trust Mortgages

Now you can find and select from the whole mortgage range at Mortgage Trust. Discover the rates and deals from their whole product range. See fixed and variable rate deals, tracker products and buy to let. Compare the Mortgage Trust against other lenders and compare rates and charges.

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About Mortgage Trust Mortgages

Mortgage Trust us the former name for Paragon's non-portfolio buy-to-let products. The lender began in 1986 as Mortgage Trust Limited but became part of the Paragon Group in 2017. Their products are available for properties in England, Scotland and Wales, and intended for landlords who don't have a portfolio but might own up to three mortgaged properties.

Products and Features

Mortgage Trust/Paragon offers products for purchase and remortgage in England, Wales and Scotland, and for remortgage only in England and Wales. They provide fixed-rate (2, 3 or 5 years) mortgages with a loan-to-value of up to 80%. Their products are for single, self-contained properties for investors and landlords, including those who are self-employed and consumer buy-to-let customers.

The non-portfolio criteria include maximum LTV amounts, set out below:

  • 80% with a loan amount up to £500,000
  • 70% with a loan amount up to £1,000,000
  • 60% with a loan amount up to £2,000,000

To qualify, applicants can't own any more than three properties, with a lending limit of £1,000,000. Up to two people can apply together under their personal names, with no limited companies or limited liability partnerships allowed. They must also not by buying from an associated limited company. Another requirement is that properties have to have an EPC certificate with a grade E or above, except in some exceptions.

A minimum combined income of £25,000 is required, but income from existing properties doesn't count. They also check that the gross rental income from the property will be equal to or greater than the Interest Coverage Ratio. For example, this is 125% for someone who is a basic rate taxpayer.

Fixed rate mortgages are available at 75% and 80% LTV, with initial rates as low as 3.25% and a minimum rate of 3% after the fixed-rate period.

Paragon also has portfolio products, but these were formerly known as Paragon Mortgages, rather than Mortgage Trust. These include single self-contained unit products, plus HMO and multi-block unit products. The criteria for these products are different, although the maximum LTV amounts are the same. The lending amount is up to £5,000,000, but minimum income levels are the same. However, limited companies can take out portfolio products.

Summary

Mortgage Trust as a brand technically doesn't exist since 2017. After Paragon Group obtained Mortgage Trust, they kept the brand separate for quite a while. However, they decided to merge Paragon Mortgages and Mortgage Trust to have both their portfolio and non-portfolio products under the same brand. At the same time, they extended their range of products to offer more options to their buy-to-let customers.

If you're looking for a buy-to-let mortgage, Paragon has options available for both investors with a large portfolio and smaller investors and landlords. If you have three properties or fewer, their non-portfolio products could be the ideal choice for you. Compare Paragon's mortgages with other available buy-to-let products to see which ones are right for you. They have a number of products to suit a range of buyers.

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