Paragon Bank has expanded its buy-to-let mortgage range with the launch of six limited edition five-year fixed rate products, available at 60% and 75% LTV, all with a 5% product fee.
Paragon has added three limited edition five-year fixed rate products at 75% LTV to its range of buy-to-let mortgages, alongside the three limited edition 60% LTV products launched recently.
On the 75% LTV options, rates start at 4.95% for single self contained (SSC) properties with an EPC rating of A to C, increasing by 5bps for properties with EPC ratings of D or E. For HMOs and multi unit blocks (MUBs), rates start at 5.20%.
These additions follow the launch of Paragon’s limited edition five-year fixed mortgages at 60% LTV, also with a 5% fee. At this lower LTV, for SSC properties with EPC ratings of A-C, rates start at 4.80%, rising by 5bps for EPC ratings of D or E, while HMO and MUB rates are available from 5.05%.
Interest coverage ratios are calculated in line with the initial rate and all products are available to landlords operating in both personal name and limited company structures.
James Harrison, product manager at Paragon Bank, said: “We’ve seen a trend in landlords choosing higher fee products to secure a lower payrate. 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.”
