Paragon Bank has launched two new buy-to-let mortgage products at up to 80% loan-to-value (LTV).
The new deals come alongside rate reductions and the removal of application fees on selected products.
The new 80% LTV products are available for landlords purchasing or remortgaging single self-contained (SSC) properties with energy performance certificate (EPC) ratings of A to C. Both options are priced at 6.14% and come with fixed-rate terms of two or five years. There is no product fee and a £299 application fee applies.
Russell Anderson, commercial director of mortgages at Paragon Bank, said the changes follow a period of increasing activity in the buy-to-let sector.
“Recent UK Finance figures revealed significant growth in buy-to-let purchase and remortgage lending,” he said. “This suggests that landlords are feeling more confident and actively expanding their portfolios, perhaps targeting higher-yielding stock, or improving the properties they already own.
“Expanding our range with buy-to-let mortgages available on SSCs at up to 80% LTV supports this, providing landlords who want to borrow more with additional options.”
As part of the refresh, the lender has also cut pricing by 10 basis points across its 70% and 75% LTV ranges for SSC properties meeting the same EPC criteria. Two-year fixed rates now start from 3.24% at 70% LTV with a 5% product fee and a £299 application fee.
At 75% LTV, two-year fixed rates begin at 4.24% with a 3% product fee and no application fee, while five-year fixes are available from 4.74% with a 5% product fee and a £299 application fee.
James Harrison, Paragon Bank’s mortgages product manager, added: “Reducing rates by 10bps on select SSC mortgages provides some great value options for landlords. Also removing application fees on our 75% LTV 3% product fee range will reduce up-front borrowing costs, offering additional value for landlords, particularly those with larger portfolios.”
The full range is available to both individual landlords and those borrowing through limited company structures across England, Scotland and Wales.
