It now offers new fee options and cashback
Specialist lender Paragon Bank has introduced new fee options and cashback incentives to its range of five-year fixed rate buy-to-let mortgages.
The bank has added 3% fee products and is offering £750 cashback on all five-year purchase and remortgage products.
The inclusion of the 3% fee products expands Paragon’s five-year fixed rate offerings, which now include options with 3%, 5%, and no fees, available at up to 75% loan-to-value (LTV). The lender said the move aims to provide landlords with increased flexibility.
Interest rates for the new 3% fee product start at 5.14% for properties with energy performance certificate (EPC) ratings of ‘A’ to ‘C’, and rise to 5.39% for houses in multiple occupation and multi-unit blocks. The interest coverage ratios (ICRs) are calculated based on the product rate.
These products are available for individual and limited company applicants in England, Scotland, and Wales and come with a free mortgage valuation.
“After listening to brokers, we’ve introduced £750 cashback to our purchase and remortgage five-year fixes, helping to offset application or legal fees,” said James Harrison (pictured), mortgages product manager at Paragon Bank.
“We’re also responding to changes in the market – as interest rates have started to reduce, products with lower fees have become more popular. Therefore, we’ve added a 3% product fee option to complement our nil fee and 5% fee five-year fixed rate range.”
Earlier this month, the lender introduced two new products – a fee-free two-year fixed rate buy-to-let mortgage and a two-year discounted variable rate product with a low fee.
Read our guide to Paragon for intermediaries here.
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