Paragon Bank unveils eight new buy-to-let mortgages

Published on

Paragon Bank has added four limited-edition products and four switch products.

Four limited edition products are available for portfolio landlords – those with four or more mortgaged properties – purchasing or remortgaging Single Self-Contained (SSC) properties. Fixed for five years, rates start at 2.67% on the 50% loan to value (LTV) mortgage and 2.77% on the 60% LTV loan, each increasing by 10 basis points for homes rated EPC D and E.

For both portfolio and non-portfolio landlords who are looking to switch to a new mortgage, Paragon has announced four 75% LTV products.

Portfolio landlords are offered finance for Houses in Multiple Occupation (HMO), Multi-Unit Blocks (MUB) and SSC. The initial rate is 3.00% when fixed over two years, rising to 3.08 when borrowed over a five-year term.

Non-portfolio landlords with SSC can choose between two-year and five-year fixed rate products, with rates set at 3.00% and 3.08% respectively.

All four limited edition products feature zero application fees and are offered with free valuations and £750 cashback. They include an interest coverage ratio (ICR) of 4.00%.

Switch products incur nil transfer fees. ICR is set at 4.00% on five-year loans and 5.50% on two-year products.

Paragon’s five-year fixed rate products are subject to Early Repayment Charges (ERC) of 5% in years one and two, 4% during years three and four and 3% for year five. ERC change to 3% in years one and two on the two-year fixed rate products.

Moray Hulme (pictured), Paragon’s director for mortgage sales, said: “Since the end of lockdown, we’ve seen an increasing population of landlords who do not wish to leverage their properties as much as they may have done previously. As a responsible lender, we have launched some 50% and 60% LTV products to cater for this market and reward this prudent approach.

“In addition, we made a commitment to keep our switch products in line with our core range and so this is an extension of that promise, matching the remortgage only products we launched last week.”

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

Nikki Haworth joins Connect as group ops director

Connect IFA has strengthened its leadership team with two senior appointments as it looks...

Homebuyers call for overhaul of property transaction process

Almost four in five home movers believe the homebuying process in England and Wales...

Pantera expands Harrogate headquarters as it targets growth and recruitment drive

Pantera Advisory Group has relocated to a larger headquarters in Harrogate as the real...

The Mortgage Works backs landlord EPC compliance pilot with Eco Approach

The Mortgage Works has partnered with retrofit specialist Eco Approach to provide free energy...

TML expands buy-to-let range with limited-edition products and rate reductions

The Mortgage Lender has launched a new range of limited-edition buy-to-let products and reduced...

Latest publication

Other news

Nikki Haworth joins Connect as group ops director

Connect IFA has strengthened its leadership team with two senior appointments as it looks...

Homebuyers call for overhaul of property transaction process

Almost four in five home movers believe the homebuying process in England and Wales...

Pantera expands Harrogate headquarters as it targets growth and recruitment drive

Pantera Advisory Group has relocated to a larger headquarters in Harrogate as the real...