For the first time in over two years, Paragon Bank has launched a two-year fixed-rate buy-to-let mortgage with nil fee, in addition to adding a two-year discounted variable product with a low fee.
Paragon’s nil fee two-year fixed rate product starts at 6.10% for the purchase or remortgage of single self-contained properties with EPC ratings of A-C. The standard option, for EPC D or E rated properties, is priced at 6.15%, while houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) are 6.35%.
The specialist lender has also added a new two-year discounted variable rate product to its range, tracking Paragon’s Standard Variable Rate (SVR) minus 3.16% on EPC A-C rated properties and 3.11% on the standard range. The mortgage is available with a 1.25% fee, with rates starting at 6.19% for the green option, 6.24% on the standard product and 6.44% for HMOs and MUBs. This complements Paragon’s 2.50% fee discounted variable rate option.
Customers utilising Paragon’s discounted and standard SVR products also have the option to track to fix. At any time during the product term, a landlord can apply to switch to any available Paragon fixed-rate product without incurring an early repayment charge.
Available at up to 75% loan to value, Interest Coverage Ratios on these products are calculated at initial rate plus two percentage points.
The products are available for individual and limited company applications in England, Scotland and Wales, include a free mortgage valuation and incur a £299 application fee.
James Harrison, mortgage product manager at Paragon Bank, said: “Landlords keep a keen eye on the economy and we know there is an anticipation that rates will continue on their current downward trajectory.
“This makes two-year products more appealing so we’re providing more choice across the term, launching a nil-fee fixed rate option and a discounted variable rate. The latter has a lower fee than our existing 2.50% fee product and is available with track to fix. This makes it a great choice for customers who want flexibility, with the option to choose a fixed rate product within the next two years without paying an Early Repayment Charge.”
