It also reduces rates on its core range of BTL products
Specialist lender Paragon Bank has introduced six new five-year fixed rate mortgages with no fee and 5% fee options.
The lender’s new offerings include three 5% fee five-year fixed rate mortgages, with rates starting from 4.6% for properties with energy performance certificate (EPC) ratings of ‘A’ to ‘C’. For homes with EPC ratings of D or E, rates begin at 4.65%, while for houses in multiple occupation (HMOs) or multi-unit blocks (MUBs), rates are 4.80%.
Rates for the corresponding nil fee products are 5.65% for properties with EPC ratings of ‘A’ to ‘C’, 5.70% for standard mortgages, and 5.90% for HMOs and MUBs.
These mortgages are available up to 65% loan-to-value (LTV) and come with a £750 application fee and £750 cashback on completion. Interest coverage ratios are calculated at 5% for the 5% fee products and match initial rates on the nil fee options
Aside from the new products, Paragon has also announced reduced rates on its core range of buy-to-let mortgages, cutting 15 basis points off 10 products.
“We’re reducing rates across our core range, as well as introducing some flexible new five-year options to offer landlords more choice,” said Louisa Sedgwick (pictured), mortgages commercial director at Paragon Bank.
“In addition to this rate cut, on products where a £750 application fee is charged, rates are lower compared to our core range. Customers will receive £750 cashback on completion, offering competitive pricing for landlords who are confident that their application will go through.
“To get a better idea of whether the property will stack up, we always encourage brokers to talk through cases with us and take advantage of our ‘pre-valuation assessment’, where one of our qualified surveyors looks at the property to assess whether it’s fit for us to lend on. As well as helping the landlord feel more confident that we will be happy to proceed, it also helps brokers know that by making a £750 upfront fee as a commitment, their client is serious about completing their mortgage application.”
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