Paragon Bank has reduced rates across its 75% LTV two-year fixed rate buy-to-let mortgage range by 0.11%, with rates now starting at 4.24%.
Paragon’s new two-year fixed rate buy-to-let products are available with either a nil or 3% product fee. Rates start at 4.24% to purchase or remortgage single self-contained (SSC) properties with EPC ratings of A-C, increasing by 5bps for homes EPC rated D and E.
Loans are also available for landlords financing HMOs and multi-unit blocks (MUBs). These products are priced at 4.59% with a 3% product fee or 6.09% with no fee.
All products are offered with free mortgage valuations. The SSC mortgages have no application fee and HMO and MUB options are subject to a £299 application fee.
Interest coverage ratios (ICRs) are calculated at initial rate plus two-percentage points and the mortgages are available to landlords operating as individuals or through limited company structures in England, Scotland and Wales.
Russell Anderson (pictured), commercial director of mortgages at Paragon, said: “We’re reducing rates across our 75% LTV two-year fixed-rate product range, improving affordability for landlords. 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.”
