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

LSL Financial Services appoints interim managing director

LSL Financial Services has appointed Piotr Nowosad as interim managing director to lead its...

Mortgage demand slows in second quarter as higher rates hit affordability

Higher borrowing costs weighed on mortgage demand during the second quarter, although Stonebridge says...

Omni Protect becomes first service provider to adopt Beagle Street intermediary proposition

Omni Protect has become the first service provider for directly authorised firms to offer...

Dudley BS rolls out new mortgage platform to all brokers

Dudley Building Society has completed the rollout of its new mortgage origination platform to...

The Cumberland commits to branch network as high street banks continue to retreat

The Cumberland Building Society has pledged to maintain its branch network across the North...

Latest publication

Other news

LSL Financial Services appoints interim managing director

LSL Financial Services has appointed Piotr Nowosad as interim managing director to lead its...

Mortgage demand slows in second quarter as higher rates hit affordability

Higher borrowing costs weighed on mortgage demand during the second quarter, although Stonebridge says...

Omni Protect becomes first service provider to adopt Beagle Street intermediary proposition

Omni Protect has become the first service provider for directly authorised firms to offer...