Paragon Bank and Molo Finance reprice BTL deals, while Hodge slashes rates on later life products
Mortgage lenders Paragon Bank, Molo Finance, and Hodge have announced updates to their product offerings, benefitting their buy-to-let and retirement mortgage customers.
Paragon Bank has refreshed its two-year buy-to-let fixed rate mortgages. Rates start at 3.89% for single self-contained properties with ‘A’ to ‘C’ energy performance certificate (EPC) ratings, increasing to 3.94% for homes rated EPC ‘D’ or ‘E’, available at 70% loan-to-value (LTV) with a 5% fee. For those seeking up to 75% LTV, rates begin at 4.80% with a 3% fee or 5.55% with a 1.50% fee for EPC ‘A’ to ‘C’ properties, and 5.60% for EPC ‘D’ and ‘E’.
Landlords financing houses in multiple occupation (HMOs) or multi-unit blocks (MUBs) have similar options, with rates starting at 4.14% at 70% LTV and 5.05% at 75% LTV. Interest coverage ratios (ICRs) are calculated at the initial rate plus two percentage points.
“Since the start of the year, we’ve seen a steady increase in the proportion of landlords looking for two-year fixed rate products,” said Louisa Sedgwick (pictured left), mortgages commercial director at Paragon Bank. “We have responded by launching these competitive rates, with a range of LTVs and fees, providing landlords with plenty of choice.”
Digital lender Molo Finance has also reduced its buy-to-let mortgage rates by up to 25 basis points (bps), with new rates for UK residents starting at 4.35% for two-year fixed buy-to-let products at 75% LTV and five-year fixed rates at 4.96%.
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Specialist property products, including multi-unit freehold blocks (MUFB), HMOs, holiday lets, and investor-led properties, now start from 4.45% for a two-year fixed rate and 5.06% for a five-year fixed rate.
Expats benefit from reduced rates of 4.99% for capital and interest mortgages and 5.74% for interest-only mortgages at 70% LTV. However, non-UK residents see unchanged fixed rates starting from 5.99% for a one-year fixed and 7.74% for a two-year fixed rate, with increased tracker rates starting from 8.65%.
“We are pleased to announce these updated rates across our buy-to-let product range,” commented Martin Sims (pictured centre), distribution director at Molo Finance. “By offering more competitive rates, we aim to empower intermediaries to secure optimal financing solutions, helping them to meet their client’s needs.”
Meanwhile, specialist lender Hodge has announced its second rate reduction this month for its 50-plus and retirement interest only (RIO) mortgages.
The new rates, featuring cuts of up to 0.33% on several two-year and five-year fixed rate products, are now available for both new and existing customers.
“We are thrilled to reduce rates further across many of our RIO and 50+ mortgage products,” said Emma Graham (pictured right), business development director at Hodge. “This rate reduction is another sign of stabilisation of the market, enabling us to implement changes more frequently.
“By making two rate reductions in less than a month, we are hoping this will instil even more confidence in the market and encourage our intermediary partners to access Hodge’s flexible, market-leading mortgage solutions.”
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