The product is aimed at investor landlords wishing to save money or release equity by remortgaging their buy-to-let properties.
John Heron, managing director of Paragon Mortgages, comments: “Remortgaging has grown as a proportion of buy-to-let lending this year, so we’ve decided to launch a highly competitive remortgage product aimed specifically at landlords wishing to refinance existing loans or release equity in order to expand their portfolios. We’re offering a 0.75% discount for the first two years, no valuation fee, plus a £250 contribution to legal fees or use of Paragon Mortgages’ solicitors.”
Details are:
Fee saver remortgage with 2 year discount rate
- 0.75% discount for 2 years (3 month LIBOR + 0.75% rather than 3 month LIBOR + 1.50%, i.e. currently 5.55%), thereafter 3 month LIBOR + 1.50%
-0.50% completion fee added to loan
-Early redemption charge: 9 months’ interest for first 2 years
-Remortgages only: £250 legal fees contribution or (except in Scotland) Paragon Mortgages’ solicitors appointed
-No valuation fees
-Rent-to-mortgage calculation: 125% at 5% reference rate
John Heron continues: “The combination of a low initial interest rate, no valuation fees and a great deal on legal fees makes this a very attractive proposition for landlords wishing to remortgage. Demand is expected to be strong and I encourage people who are interested to get in touch as soon as possible, direct or via their intermediary.”
