Rates start at 4.85% and are available for single self-contained properties, HMOs and MUBs
Specialist lender Paragon Bank has lowered rates on its core two-year fixed buy-to-let mortgages by 45 basis points (bps), with rates now starting at 4.85%.
The lender’s rates on the two-year fixes are priced at 4.85% for single self-contained properties with energy performance certificate ratings (EPC) of ‘A’ to ‘C’ and 4.90% for ‘D’ and ‘E’ EPC rated properties. Interest coverage ratios (ICR) are calculated at 6.85% and 6.90% respectively.
Paragon is also offering a two-year fixed rate buy-to-let mortgage for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), with interest charged at 5.10% and ICR calculated at 7.10%.
The products incur a 5% fee and are available to portfolio landlords at up to 70% loan-to-value (LTV). The mortgages are suitable for landlords applying as individuals or through limited company structures in England, Scotland, and Wales.
“Our most recent rate reduction sees us quickly respond to the current stability of the swaps market and take 45bps off our core two-year buy-to-let fixed rate, offering our customers some very competitively priced products,” stated Louisa Sedgwick (pictured), commercial director at Paragon Bank. “These should appeal to borrowers who would like the certainty of a fixed rate product, but over a shorter two-year period.
“While five-year fixes remain popular, we have seen demand grow for two-year options. This could be driven by more landlords choosing to reassess the market in two years’ time, with the recent easing of inflation increasing confidence.”
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