"Speaking to both brokers and landlords, we know that many are more positive than they were during last year and we’re already seeing this reflected in business levels"
- Louisa Sedgwick - Paragon Bank
Paragon Bank's new 5-year products start with rates at 4.89% and are available on the lenders’s 5.00% fee option, which is suitable for the purchase or remortgaging of single self-contained properties categorised as ‘green’ due to energy performance certification of A-C.
This increases to 4.94% for homes with lower energy efficiency ratings and 5.14% for Houses in Multiple Occupation and Multi-Unit Blocks.
Paragon is also offering nil fee options, with £750 cashback available on selected mortgages. These are priced from 5.94% for the ‘green’ SSC product, rising by 5bps for standard energy efficiency and to 6.19% for HMO and MUB.
All of the five-year fixed-rate products included in the launch have interest coverage ratios (ICRs) calculated in line with initial rates. They are offered at up to 75% loan-to-value (LTV) for landlords applying through limited company structures or in personal name in England, Scotland and Wales.
Louisa Sedgwick, Commercial Director at Paragon Bank, said: “Speaking to both brokers and landlords, we know that many are more positive than they were during last year and we’re already seeing this reflected in business levels.
“This reinforces our belief that landlords want to invest in the sector in response to continued strong levels of tenant demand. We’re aiming to support this by providing landlords with more choice, offering 5% and nil fee products as well as options that include £750 cashback, which can be used to cover legal expenses, for example.”
