Paragon Bank has announced the release of three limited edition buy-to-let mortgages featuring 5-year fixed rates starting at just 5.35%. This move is aimed at landlords looking to purchase single self-contained properties, houses in multiple occupation (HMO), and multi-unit blocks (MUB).
Landlords who invest in properties with energy ratings of A-C can avail of these 5-year fixed mortgages at up to 65% loan-to-value (LTV) with an interest of 5.35%. However, for properties that have energy ratings of D or E, the interest will be slightly higher, set at 5.40%. Both products will use an interest coverage ratio (ICR) of 5.50%.
In addition, Paragon Bank is extending its portfolio by offering a 5.60% LTV 5-year fixed rate for HMOs and MUBs, with an identical ICR rate.
These special buy-to-let mortgage offers carry a 5% fee. They are tailored for portfolio landlords – specifically those owning four or more mortgaged buy-to-let properties. Applications can be made either by individuals or through limited company structures in England, Scotland, and Wales.
Louisa Sedgwick (pictured), commercial director at Paragon Bank, said: “Recognising that portfolio landlords continue to be proactive in the market, many with substantial equity across their portfolios, we’ve introduced these limited edition 5-year fixed-rate mortgages. Our goal is to present these landlords with attractive, competitively priced options.”
Sedgwick also highlighted the synergy between these new offerings and their other products, adding: “These 5-year fixed-rate mortgages beautifully complement the 2-year fixed-rate mortgages we introduced recently, granting landlords the advantage of fixed interest rates across two sought-after terms.”
