It offers both fee-based and fee-free options
Specialist lender Paragon Bank has expanded its portfolio of buy-to-let mortgages by introducing new five-year fixed rate products.
The rates for these new products start at 4.89%, available on Paragon’s 5% fee option and are suitable for purchasing or remortgaging single self-contained (SSC) properties classified as ‘green’ due to their energy performance certification (EPC) rating of ‘A’ to ‘C’, the company stated.
The rate increases to 4.94% for properties with lower energy efficiency ratings and further to 5.14% for houses in multiple occupation (HMOs) and multi-unit blocks (MUB).
In addition to the fee-based options, Paragon Bank is offering fee-free alternatives, accompanied by £750 cashback for selected mortgages. These mortgages are priced starting from 5.94% for the green SSC product, with a slight increase of five basis points for standard energy efficiency, and up to 6.19% for HMO and MUB properties.
The lender, which launched five-year fixed rate BTL mortgages with no product fees last month, said all these products have interest coverage ratios calculated in alignment with initial rates. These are available at up to 75% loan-to-value for landlords applying through limited company structures or in personal names in England, Scotland, and Wales.
“Speaking to both brokers and landlords, we know that many are more positive than they were during last year, and we’re already seeing this reflect in business levels,” Louisa Sedgwick (pictured), commercial director at Paragon Bank, said. “This reinforces our belief that landlords want to invest in the sector in response to continued strong levels of tenant demand.
“We’re aiming to support this by providing landlords with more choice, offering 5% and nil fee products, as well as options that include £750 cashback, which can be used to cover legal expenses, for example.”
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