Paragon Bank has reintroduced a feature allowing existing buy-to-let customers to move from a Bank Base Rate tracker mortgage to one of its fixed-rate switch products without incurring an early repayment charge.
The Track to Fix option applies across Paragon’s tracker switch range for single self-contained properties, houses in multiple occupation and multi-unit blocks.
Landlords can apply to switch to any available Paragon product switch fixed rate during the tracker term, subject to the eligibility requirements in place at the time.
For single self-contained properties, two-year trackers are available at up to 75% loan-to-value. Rates start at 5.10%, equivalent to Bank Base Rate plus 1.35 percentage points, with a 1.50% fee.
An alternative with a 0.75% fee is available from 5.47%, or Bank Base Rate plus 1.72 percentage points.
Equivalent mortgages for houses in multiple occupation and multi-unit blocks start at 5.45%, or Bank Base Rate plus 1.70 percentage points, with a 1.50% fee. The option with a 0.75% fee starts at 5.82%, equivalent to Bank Base Rate plus 2.07 percentage points.
Paragon’s Bank Base Rate tracker range replaced its previous variable-rate mortgages linked to the lender’s standard variable rate. Track to Fix had previously been offered on its discounted variable-rate products.
James Harrison (pictured), product manager at Paragon Bank, said: “We’ve received a positive response since replacing our previous variable rate products with our Bank Base Rate tracker range and we’ve continued to review how we can further strengthen the proposition for brokers and landlords.
“Track to Fix proved a popular feature on our previous discounted variable rate products because it enabled customers to move into a fixed rate without incurring an early repayment charge.
“By reintroducing the feature to our BBR tracker range, existing customers have another reason to consider these products.
“Landlords can benefit from a mortgage that tracks movements in Bank Rate while retaining the option to switch to a Paragon fixed-rate product at a later date should they wish to take a different approach to managing their borrowing.”
