"By cutting rates at 75% LTV and offering even better value at 60% LTV, we are aiming to ease affordability constraints for landlords and provide more flexibility in how borrowing costs are structured"
- James Harrison - Paragon Bank
Paragon Bank has expanded its buy-to-let mortgage range with six limited edition five-year fixed rate products, available at 60% and 75% LTV, all carrying a 5% product fee.
The 75% LTV additions follow three limited edition products that the bank launched recently at 60% LTV. At 75% LTV, rates start at 4.95% for single self-contained properties with an EPC rating of A to C, rising by 5bps for D or E-rated homes. HMO and multi-unit block products at the same LTV start from 5.20%.
At 60% LTV, five-year fixed rates for EPC A-to-C single self-contained properties begin at 4.80%, again with a 5bp step-up for D or E ratings. HMO and multi-unit block options are available from 5.05%.
Across all six products, interest coverage ratios are calculated in line with the initial rate, and all are open to landlords borrowing in both personal name and limited company structures.
"We've seen a trend in landlords choosing higher fee products to secure a lower payrate," said James Harrison, product manager at Paragon Bank (pictured).
"By cutting rates at 75% LTV and offering even better value at 60% LTV, we are aiming to ease affordability constraints for landlords and provide more flexibility in how borrowing costs are structured. This recent shift towards higher fee products has been influenced by rising mortgage rates across the industry, driven in part by the ongoing conflict in the Middle East and its impact on funding conditions for lenders."
"We remain focused on responding to these pressures with competitive pricing and a range of options that support landlords' investment plans."
