"We’re excited to launch our new five-year fixes, especially because we know that the new 4.69% rate is extremely competitive and the cheapest five-year product that we’ve launched since August last year"
- Louisa Sedgwick - Paragon Bank
Paragon Bank has launched a 4.69% five-year fixed rate buy-to-let mortgage, available for single self-contained properties with EPC Ratings of A to C, up to 70% loan-to-value (LTV).
The rate increases to 4.74% on homes with EPC ratings of D or E and 4.94% when financing Houses in Multiple Occupation and Multi-Unit Blocks.
Paragon has also pioneered an industry first by introducing zero Early Repayment Charges (ERCs) for the first year of the product, with a flat 3% fee for the remainder of the term duration.
The product comes with a 7% fee and Interest Coverage Ratio (ICR) is calculated at 5.5%.
In addition to this, Paragon has also launched a nil product fee five-year option, starting at 6.30% for single self-contained properties at 65% LTV, with the ICR set at pay rate.
Paragon last week reduced its broader range of five-year, 5% fee buy-to-let products by 30bps. These products also benefit from lower ERCs of 2% in year one, 4% in years two, three and four, and 3% in year five.
These products include a free valuation and are available for portfolio landlords - those with four or more buy-to-let mortgaged properties - applying as individuals or within limited company structures in England, Scotland and Wales.
Louisa Sedgwick, Commercial Director at Paragon Bank, said: “We’re excited to launch our new five-year fixes, especially because we know that the new 4.69% rate is extremely competitive and the cheapest five-year product that we’ve launched since August last year. We’re also pleased to bring an industry first through zero ERCs in the first year of the product to add an element of flexibility to the certainty of fixing at a market-leading rate.
“Brokers have told us that they’re trying different approaches to find solutions for their clients and that one of the best ways we can support landlords in the current dynamic market is by offering choice, including a range of rate and fee options, and we feel that our latest products certainly do that.”
