Paragon Bank has introduced a series of enhancements to its buy-to-let Bank Base Rate (BBR) tracker range, adding a 2% fee product to give landlords more options.
The revised range is available at up to 75% loan-to-value (LTV) and spans single self-contained properties (SSCs), houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), giving landlords greater choice when structuring their borrowing.
For SSC properties at 75% LTV, the latest two-year tracker is priced from BBR plus 1.00%, currently 4.75%, with a 2.00% product fee. The product includes a free mortgage valuation, no application fee and no early repayment charges.
Two-year tracker options for HMOs and MUBs at the same LTV tier start from BBR plus 1.35%, also with a 2.00% fee, and carry the same benefits of no early repayment charges and a free valuation.
Paragon has also taken 15bps off a selection of its two-year fixed-rate mortgages, giving landlords a balance between certainty and flexibility across different pricing and fee combinations. Within the SSC range, rates begin at 3.40% for properties with an EPC rating of A to C at a 5.00% fee level, or 3.45% for less energy-efficient properties.
A mid-fee option is available from 4.40% at 3.00%, while a nil fee alternative starts from 5.90%. Selected products include free valuations and no application fees, with £500 cashback available on the higher fee option.
For HMOs and MUBs, pricing starts from 3.55% at a 5.00% fee, rising to 4.55% with a 3.00% fee and 6.05% on a nil fee basis. These products also benefit from free valuations, with application fees set at £299. All fixed-rate products carry early repayment charges of 3% in each of the first two years and revert to Paragon's standard variable rate, currently 7.35% less 1.25%.
Key details of the range include:
- Two-year SSC tracker from BBR plus 1.00%, currently 4.75%, at 75% LTV
- Two-year HMO and MUB tracker from BBR plus 1.35%, also at 75% LTV
- 15bps cut across selected two-year fixed-rate products
- 14 total tracker options for new customers, plus six switch and four further advance products
James Harrison, product manager at Paragon Bank (pictured), said the tracker range has performed well since launch. "We've had a strong response to our BBR tracker range over the past six months after launching five-year options in December last year, before adding two-year terms at the start of this year," he explained.
He added: "Extending the range to total 14 options for new customers, alongside six switch and four further advance products, and introducing more fee options, we are giving brokers greater scope to match products to their clients' priorities, whether that is focusing on pay rate, upfront cost or overall balance across a portfolio."
