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.”