Paragon Bank has revamped its range of buy-to-let mortgage products for portfolio and non-portfolio landlords.
The lender is offering a selection of two and five-year fixed rates for landlords who are purchasing or remortgaging in their personal names or through a limited company.
All products include a free mortgage valuation, and some have zero fees and/or up to £750 cashback.
The changes include lower rates on 10 different products across the range, up to 75% loan-to-value.
Deals include the following:
Portfolio:
- Two-year fixed rate at 75% LTV down 0.05 percentage points to 3.20% with 1% product fee and £750 cashback. Available on HMOs and Multi-unit blocks (MUBs)
- Five-year fixed rate at 75% LTV down 0.45 percentage points to 3.75% with nil product fee and £750 cashback. Available on SSC
Non-portfolio:
- Five-year fixed rate at 70% LTV down 0.25 percentage points to 2.99% with a product fee reduced by 0.5 percentage points to 1.50%. Available on SSC
- Five-year fixed rate at 75% LTV down 0.29 percentage points to 3.65% with nil product fee and £350 cashback. Available on SSC
The portfolio range includes fixed rates starting at 3.20% for single self-contained properties (SSCs) and 3.30% for houses in multiple occupation (HMOs) and multi-unit blocks (MBUs).
Non-portfolio products are offered to landlords seeking to finance SSCs over a five-year term with rates fixed from as low as 2.99%.
Moray Hulme (pictured), director of mortgage sales at Paragon, said: “The extension of the Stamp Duty holiday means that we’re likely to see further increased purchase activity over the coming months. In addition, we know that a significant number of landlords opted for five-year fixed rate products as a result of the introduction of the 3% Stamp Duty surcharge in 2016. These mortgages are set to mature so we expect to see an increased focus on remortgage activity too.
“Landlords are adept at responding to the market and we aim to support this by developing products that provide useful and competitive options for those who are modifying their portfolios in line with current conditions.”
On the five-year products, early redemption charges (ERC) of 5% are in place during years one and two, charged at 4% for years three and four and 3% for year five. An ERC of 3% is applicable on the two-year mortgages.
