"From speaking to brokers, we know that two-year deals are a popular option, with some landlords looking to fix now and then reassess the market and their businesses in two years’ time when rates are expected to be lower"
- Russell Anderson - Paragon Bank
Paragon Bank has reduced rates across its two-year fixed rate buy-to-let mortgage products at 75% loan-to-value (LTV), with pricing lowered by 11 basis points (bps) and starting from 4.24%.
The revised product range is available for both purchase and remortgage of single self-contained (SSC) properties, houses in multiple occupation (HMOs), and multi-unit blocks (MUBs), up to 75% LTV.
Rates for SSC properties with an EPC rating of A to C begin at 4.24%. For homes rated EPC D or E, rates increase by 5 bps. Customers can select from options with either a 3% product fee or no fee.
For HMO and MUB properties, rates are set at 4.59% with a 3% product fee, or 6.09% with no product fee. While SSC mortgage products come with no application fee, the HMO and MUB products carry a £299 application charge. All mortgages in the range include free valuations.
Interest coverage ratios (ICRs) are calculated at the initial rate plus two percentage points. The mortgages are available to landlords operating as individuals or through limited companies in England, Scotland and Wales.
“We’re reducing rates across our 75% LTV two-year fixed-rate product range, improving affordability for landlords,” said Russell Anderson, commercial director of mortgages at Paragon Bank (pictured). “From speaking to brokers, we know that two-year deals are a popular option, with some landlords looking to fix now and then reassess the market and their businesses in two years’ time when rates are expected to be lower.
“The products are priced competitively and should appeal to experienced, larger landlords, as well as those with 15 or fewer properties who may be able to benefit from a significantly smoother application process, with fewer document requirements following the most recent process and systems enhancements we’ve made.”
