Paragon Bank has expanded its buy-to-let mortgage offering with the launch of six new two-year Bank Base Rate tracker products, following feedback from intermediary partners.
The new products, available at up to 75% loan-to-value, sit alongside Paragon’s existing five-year Bank Base Rate tracker mortgages and are designed to give landlords greater flexibility.
The two-year deals are not subject to early repayment charges, allowing borrowers to switch or redeem at any point during the term without penalty.
Rates start from 5.10%, equivalent to Bank Base Rate plus 1.35%, for single self-contained properties. For landlords borrowing against Houses in Multiple Occupation or multi-unit blocks, pricing starts from 5.45%, or Bank Base Rate plus 1.70%.
Landlords can choose from three fee options of 0.75%, 1% or 1.50%. The products are available for both purchase and remortgage, with interest coverage ratios calculated at the product’s initial rate plus two percentage points.
In line with Paragon’s recently launched five-year Bank Base Rate tracker products, the two-year range includes free valuations across all property types and no application fees for single self-contained properties. Applications for HMOs and multi-unit blocks carry a £299 fee.
The lender has also confirmed that any of its Bank Base Rate tracker products can be used within a multi-property application covering between four and 99 properties.
This structure reduces legal costs by requiring only one legal advice certificate for the entire application, while application fees for HMOs and multi-unit blocks are removed.
James Harrison, buy-to-let product manager at Paragon Bank, said: “Adding two-year products to our range of Bank Base Rate tracker mortgages further increases choice for landlords, with a range of fee options and no ERCs offering customers a balance of flexibility and certainty.
“Following feedback from brokers, the addition to the range follows the launch of six five-year Bank Base Rate tracker products in December last year, shortly after Bank Rate was cut from 4% to 3.75%.
“The latest additions feature the same benefits as the five-year versions – free valuations and no application fees on SSCs – and with further Bank Rate cuts forecast for this year, these products will be particularly appealing to landlords.”
Louisa Sedgwick, managing director of mortgages at Paragon Bank, added: “The five-year BBR tracker products launched at the end of last year have proven popular with landlords.
“The feedback we get from our intermediary partners is invaluable and their market insight helps to inform our products and proposition.
“The addition of the two-year options to our BBR product range demonstrates how we don’t just listen to broker feedback, we act upon it.”
