Paragon Bank has expanded its buy-to-let mortgage offering with six two-year Bank Base Rate tracker products, responding to broker feedback and giving landlords more options.
The two-year products, available at up to 75% loan-to-value, sit alongside Paragon's existing five-year mortgages aligned to the Bank of England's Base Rate. Landlords can switch products at any point during the two-year term without facing Early Repayment Charges.
Rates start at 5.10%, equivalent to BBR plus 1.35%, for single self-contained properties. Landlords financing Houses in Multiple Occupation or Multi-Unit Blocks can access products with rates from 5.45%, BBR plus 1.70%.
Three fee options are available: 0.75%, 1% and 1.50%. The mortgages can be used for purchasing or remortgaging, with interest coverage ratios calculated at the product's initial rate plus 2 percentage points.
The new products include free valuations across the range and no application fees for single self-contained property mortgages. HMO and MUB applications carry a £299 application fee.
Landlords can select any of Paragon's BBR tracker products as part of a multi-property application for 4-99 properties. This reduces legal costs, requiring only one legal advice certificate across the whole application, and removes application fees for HMO and MUB applications.
"Adding two-year products to our range of Bank Base Rate tracker mortgages further increases choice for landlords, with a range of fee options and no ERCs offering customers a balance of flexibility and certainty," said James Harrison, buy-to-let product manager at Paragon Bank (pictured).
"Following feedback from brokers, the addition to the range follows the launch of six five-year Bank Base Rate tracker products in December last year, shortly after Bank Rate was cut from 4% to 3.75%. The latest additions feature the same benefits as the five-year versions – free valuations and no application fees on SSCs – and with further Bank Rate cuts forecast for this year, these products will be particularly appealing to landlords."
"The five-year BBR tracker products launched at the end of last year have proven popular with landlords," added Louisa Sedgwick, managing director of mortgages at Paragon Bank. "The feedback we get from our intermediary partners is invaluable, and their market insight helps to inform our products and proposition. The addition of the two-year options to our BBR product range demonstrates how we don't just listen to broker feedback, we act upon it."
