Paragon Bank has announced reductions in its core range of buy-to-let mortgages, cutting rates by 15 basis points on 10 products. Additionally, the bank has launched six new 5-year fixed rate mortgages with no fee and 5% fee options.
Paragon’s new offerings include three 5% fee 5-year fixed rate mortgages with rates starting at 4.60% for properties with EPC ratings of A-C, 4.65% for standard products with EPC ratings of D or E, and 4.80% for houses in multiple occupation (HMO) or multi-unit blocks (MUB). The corresponding no-fee products are set at 5.65% for EPC A-C, 5.70% for standard mortgages, and 5.90% for HMOs and MUBs.
These products are available up to 65% loan-to-value (LTV) and include a £750 application fee, with £750 cashback on completion. Interest coverage ratios are calculated at 5.00% for the 5% fee products and in line with initial rates for the no-fee options.
Louisa Sedgwick, mortgages commercial director at Paragon Bank, said: “We’re reducing rates across our core range, as well as introducing some flexible new five-year options to offer landlords more choice. 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.”
