It also launches a new £2,995 fee product for portfolio landlords
Specialist lender Paragon Bank has announced rate reductions of up to 40 basis points (bps) on a number of its fixed rate buy-to-let mortgages.
As a result of the reductions across eight of the lender’s two-year fixed rate products, rates now start from 4.19% for landlords purchasing or remortgaging single self-contained (SSC) properties with energy performance certificate (EPC) ratings of ‘A’ to ‘C’.
Available at up to 70% loan-to-value (LTV), the rate increases by 5bps when financing homes with EPC ratings of ‘D’ or ‘E’.
Interest coverage ratios (ICR) are calculated at 6.19% and 6.24% for ‘A’ to ‘C’ EPC-rated properties and ‘D’ and ‘E’ EPC-rated properties, respectively. The product fee is set at 5.00%.
The specialist lender has also lowered the rates of five of its five-year fixed rate mortgages by up to 20bps, with rates now starting at 4.69% for landlords financing SSC properties with an EPC rating of ‘A’ to ‘C’, increasing to 4.74% for homes rated EPC ‘D’ or ‘E’, and 4.94% when borrowed on houses in multiple occupation (HMOs) or multi-unit blocks (MUBs).
The limited edition products are available at up to 70% LTV, subject to a 7% product fee, and ICRs are calculated at 5.50%.
Aside from the latest rate cuts, Paragon has also launched a new £2,995 fee product with rates of 5.94% for the EPC ‘A’ to ‘C’ green mortgage, 5.99% for standard, and 6.19% for HMOs and MUBs. ICRs are calculated in line with initial rates and the product is available at up to 75% LTV for portfolio landlords – those with four or more buy-to-let mortgaged properties.
The lender said all of its products are available to landlords applying through limited company structures or in personal name in England, Scotland, and Wales. They include a free valuation and are subject to a £299 application fee.
“We recently reduced rates on some of our core five-year fixes, a move that has been well received by the market,” said Louisa Sedgwick (pictured), commercial director at Paragon Bank. “We are certainly seeing landlords becoming increasingly more active in the market, for both purchase and remortgage, there is undoubtedly an incredibly strong demand for good quality rented homes.
“We’re constantly monitoring the market and with swaps rates moving in the right direction, reflecting an improving economic outlook, we’re able to again improve our product range. With products for both portfolio and non-portfolio landlords and flat and percentage fee options, we’re aiming to support more landlords with more choice, to invest in the PRS.”
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