"Economic instability fuelled by the war in Iran continues to influence funding costs, but we remain responsive to market conditions"
- James Harrison - Paragon Bank
Paragon Bank has expanded its buy-to-let mortgage offering with a limited edition range of 60% loan-to-value products, available on two- and five-year fixed terms across single self-contained properties, Houses in Multiple Occupation, and multi-unit blocks.
The range comprises six products for single self-contained (SSC) properties and three for HMOs and multi-unit blocks (MUBs). For SSCs, rates start at 4.35% on the bank's green mortgage product, available on properties with an EPC rating of A to C.
Properties with lower energy efficiency ratings attract a rate five basis points higher. Landlords financing HMOs or MUBs can access rates from 4.60%.
Flexible fee structures
Products are available with either a 3% fee or a nil-fee option, giving landlords flexibility in how they structure their borrowing costs. SSC products carry no application fee, while HMO and MUB loans are subject to a £150 application fee. Interest coverage ratios are calculated at the initial rate plus two percentage points. The range is open to landlords borrowing in both personal name and limited company structures.
Portfolio landlords catered for
All products qualify for Paragon's multi-property proposition, which applies to portfolios of between four and 99 properties. This allows landlords to submit a single application covering multiple properties, with no application fees and reduced legal requirements. Rather than providing one legal advice certificate per property, borrowers need only one across the entire application.
"We continue to see demand from landlords who are choosing to borrow at lower LTVs," said James Harrison, product manager at Paragon Bank (pictured). "We've responded by extending our 60% LTV offering across SSC, HMO and MUB properties, while giving landlords the flexibility to choose between 3% and nil-fee structures."
"Economic instability fuelled by the war in Iran continues to influence funding costs, but we remain responsive to market conditions. With swaps plateauing and rates slightly easing recently, we're able to provide more options for landlords with this keenly priced limited edition range."
