It also introduces industry-first zero ERC during first year of product
Specialist lender Paragon Bank has launched its lowest rate in over 12 months – a 4.69% five-year fixed-rate buy-to-let mortgage.
The rate is available for single self-contained properties with energy performance certificate (EPC) ratings of ‘A’ to ‘C’, up to 70% loan-to-value (LTV).
On properties with EPC ratings of ‘D’ or ‘E’ and when financing houses in multiple occupation (HMO) and multi-unit blocks (MUBs), the rate increases to 4.74% and 4.94%, respectively.
In addition, Paragon has removed early repayment charges (ERCs) for the first year of the product, with a flat 3% fee for the remainder of the term duration.
The product comes with a 7% fee and interest coverage ratio (ICR) is calculated at 5.5%.
Paragon has also launched a nil product fee five-year option, starting at 6.30% for single self-contained properties at 65% LTV, with the ICR set at pay rate.
“We’re excited to launch our new five-year fixes, especially because we know that the new 4.69% rate is extremely competitive and the cheapest five-year product that we’ve launched since August last year,” Louisa Sedgwick (pictured), commercial director at Paragon Bank, said. “We’re also pleased to bring an industry first through zero ERCs in the first year of the product to add an element of flexibility to the certainty of fixing at a market-leading rate.
“Brokers have told us that they’re trying different approaches to find solutions for their clients and that one of the best ways we can support landlords in the current dynamic market is by offering choice, including a range of rate and fee options, and we feel that our latest products certainly do that.”
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