Paragon Bank makes BTL fixed rate reductions

Published on

Paragon Bank has lowered rates by up to 40bps on 13 fixed-rate buy-to-let mortgages, as well as launching a new flat-fee product.

Following reductions of up to 40bps across eight of its two-year fixed-rate products, Paragon is offering rates starting at 4.19% for landlords purchasing or remortgaging single self-contained (SSC) properties EPC rated A-C. Available at up to 70% LTV, the rate increases by 5bps when financing homes with EPC ratings of D or E. Interest coverage ratios (ICR) are calculated at 6.19% and 6.24%, respectively, and the product fee is set at 5.00%.

Paragon has also reduced five of its five-year fixed-rate mortgages by up to 20bps. Rates start at 4.69% for landlords financing single self-contained properties with an Energy Performance Certificate rating of A-C, increasing to 4.74% for homes rated EPC D or E and 4.94% when borrowed on houses in multiple occupation (HMO) or multi-unit blocks (MUB).

These limited-edition products are available at up to 70% loan-to-value, subject to a 7% product fee and ICRs are calculated at 5.50%.

In addition, the specialist lender has launched a new £2,995 fee product with rates of 5.94% for the EPC A-C ‘green’ mortgage, 5.99% standard and 6.19% for HMO and MUB. ICRs are calculated in line with initial rates and the product is available at up to 75% LTV for portfolio landlords – those with four or more buy-to-let mortgaged properties.

All products are available to landlords applying through limited company structures or in personal name in England, Scotland and Wales. They include a free valuation and are subject to a £299 application fee.

Louisa Sedgwick (pictured), commercial director at Paragon Bank, said: “We recently reduced rates on some of our core five-year fixes, a move that has been well received by the market. We are certainly seeing landlords becoming increasingly more active in the market, for both purchase and re-mortgage, there is undoubtedly an incredibly strong demand for good quality rented homes.

“We’re constantly monitoring the market and with swaps rates moving in the right direction, reflecting an improving economic outlook, we’re able to again improve our product range. With products for both portfolio and non-portfolio landlords and flat and percentage fee options, we’re aiming to support more landlords with more choice, to invest in the PRS.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Market Harborough broadens tier two mortgage criteria to boost complex case lending

Market Harborough Building Society has introduced a series of criteria enhancements to its tier...

Coventry for intermediaries reduces rates across residential and buy-to-let ranges

Coventry for intermediaries has announced rate cuts of up to 19 basis points, with...

Halifax cuts remortgage rates across selected two and five-year fixed deals

Halifax Intermediaries has announced a series of rate cuts across its remortgage product range,...

The Leeds reports £104m profit amid robust lending and savings growth

Leeds Building Society has reported a profit before tax of £104.4 million for the...

Annual house price growth picks up as affordability improves

The UK housing market showed renewed resilience in July, with house prices rising by...

Latest publication

Latest opinions

Job cuts to inflation shock: preparing for a mortgage arrears crisis

The latest data on jobs paints a picture of a rapidly weakening labour market. The...

URGENT! AI Is coming for you. Or maybe not…

I’ll try to make this as straight to the point as I can. The...

Mind the gap: Can mortgage advice change the game for protection?

Many industry insiders still talk about the UK protection gap and how vast it...

Navigating HMO and MUFB complexity with confidence

Historically, larger Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs) have often...

Other news

Market Harborough broadens tier two mortgage criteria to boost complex case lending

Market Harborough Building Society has introduced a series of criteria enhancements to its tier...

Coventry for intermediaries reduces rates across residential and buy-to-let ranges

Coventry for intermediaries has announced rate cuts of up to 19 basis points, with...

Halifax cuts remortgage rates across selected two and five-year fixed deals

Halifax Intermediaries has announced a series of rate cuts across its remortgage product range,...