An experienced portfolio landlord has achieved a significant saving of £280,000 over five years by refinancing their 77-property portfolio with Paragon Bank. The substantial cost-cutting was made possible by consolidating multiple individual mortgages into a single application, a strategy gaining popularity among larger landlords seeking to streamline operations and reduce borrowing costs in the face of rising mortgage rates.
The transaction, facilitated by Robert Haddrick of Bell Mortgage Solutions, involved Paragon's multi-property offering, which allows landlords to include between four and 99 properties within one application. This approach provided benefits such as free valuations across the entire portfolio, a single underwriter managing the process from start to finish, and a single independent legal advice certificate covering all properties.
Consolidated applications like this are becoming increasingly common in the buy-to-let sector, where landlords are seeking greater efficiencies amid rising mortgage rates and regulatory pressures. By blending products across Paragon's range and allowing properties to complete at different times, the solution offered flexibility while delivering a clear financial advantage for the landlord.
Stephen Harrison, business development manager at Paragon Bank, described the case as complex but highlighted how a portfolio-wide approach could yield significant savings.
The UK property market is undergoing significant changes, with interest rates having risen significantly over the past two years. Recent data from Rightmove shows that the average two-year fixed buy-to-let mortgage rate remains elevated, impacting profitability for many landlords. This makes cost-saving measures like consolidating borrowing increasingly vital for maintaining viable property portfolios.
This case serves as a reminder to existing homeowners with multiple properties to review and optimise their mortgage arrangements to reduce outgoings. While the scale of 77 properties is exceptional, the principle applies across the board – even for those with smaller portfolios.