Paragon Bank has strengthened its buy-to-let offering, adding six two-year options to its range of Bank Base Rate tracker products, responding to broker feedback and providing greater choice for landlords.
The addition of the two-year products, available up to 75% LTV, complements Paragon’s existing range of five-year mortgages. The mortgages are not subject to early repayment charges, giving landlords the freedom to change products at any point during the two-year term without penalty.
Rates start at 5.10%, equivalent to BBR plus 1.35%, for single self-contained properties (SSCs). Landlords financing HMOs or multi-unit blocks (MUBs) can choose products with rates from 5.45%, BBR plus 1.70%.
Landlords can opt for one of three fee options - 0.75%, 1% and 1.50%. Available for purchasing or remortgaging, interest coverage ratios (ICR) are calculated at the product’s initial rate plus 2 percentage points.
In addition to no ERCs, the new products feature the same benefits as Paragon’s recently launched five-year BBR tracker mortgages, with free valuations across the range and no application fees for SSC property mortgages. A £299 application fee applies to HMO and MUB applications.
Additionally, landlords can select any of Paragon’s BBR tracker products as part of a multi-property application for 4-99 properties. This benefits from reduced legal costs, with only one legal advice certificate needed across the whole application, along with the removal of applications fees for HMO and MUB applications.
James Harrison, buy-to-let product manager at Paragon Bank, said: “Adding two-year products to our range of Bank Base Rate tracker mortgages further increases choice for landlords, with a range of fee options and no ERCs offering customers a balance of flexibility and certainty.
“Following feedback from brokers, the addition to the range follows the launch of six five-year Bank Base Rate tracker products in December last year, shortly after Bank Rate was cut from 4% to 3.75%. The latest additions feature the same benefits as the five-year versions – free valuations and no application fees on SSCs – and with further Bank Rate cuts forecast for this year, these products will be particularly appealing to landlords.”
Louisa Sedgwick, managing director of mortgages at Paragon, added: “The five-year BBR tracker products launched at the end of last year have proven popular with landlords. The feedback we get from our intermediary partners is invaluable and their market insight helps to inform our products and proposition. The addition of the two-year options to our BBR product range demonstrates how we don’t just listen to broker feedback, we act upon it.”
