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

Skipton cuts fixed rates and widens home mover range

Skipton Building Society is reducing rates across its fixed mortgage range by an average...

Quantum Mortgages promotes Mihramane and Ajaib

Quantum Mortgages has made two internal promotions across its sales and completions teams as...

Complex incomes hindering aspiring Scottish buyers

More than half of Scottish adults with complex incomes who do not own a...

MAB adds three senior hires across marketing, finance and technology

Mortgage Advice Bureau has strengthened its executive team with three senior appointments spanning marketing,...

Tenant views of landlords more positive than wider perceptions, YBS research finds

Private renters are significantly more positive about landlords than wider public debate might suggest,...

Latest publication

Other news

Skipton cuts fixed rates and widens home mover range

Skipton Building Society is reducing rates across its fixed mortgage range by an average...

Quantum Mortgages promotes Mihramane and Ajaib

Quantum Mortgages has made two internal promotions across its sales and completions teams as...

Complex incomes hindering aspiring Scottish buyers

More than half of Scottish adults with complex incomes who do not own a...