Paragon Bank has reduced rates on its 2-year fixed-rate buy-to-let (BTL) mortgages by 0.30%, with rates now starting at 3.34%.
This marks the lowest level since May 2022.
The 3.34% rate is available at up to 70% loan-to-value (LTV) for Single Self-Contained (SSC) properties that have Energy Performance Certificate (EPC) ratings of A-C.
The products are subject to Interest Coverage Ratios of 5.50% and a 5% fee.
Paragon is also offering 2-year fixed rates at up to 75% LTV for purchases or remortgages of SSCs.
Rates start at 4.34% for Paragon’s green mortgage and rise by 0.5% for homes with lower EPC ratings of D or E.
A nil fee option is available, starting at 5.84%.
These products have Interest Coverage Ratios set at two percentage points higher than the initial rates.
For houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), rates are set at 3.59% for the 5.00% fee product, 4.59% for the 3% fee, and 6.09% for the nil fee mortgage.
The products come with a free valuation and are subject to a £299 application fee.
They are designed for landlords purchasing or remortgaging properties as individuals or through limited company structures in England, Scotland, and Wales.
James Harrison (pictured), mortgages product manager at Paragon Bank, said: “We’re really pleased to reduce rates on two-year fixes, taking 30bps off across the range.
“It’s great to be able to offer landlords rates that start at 3.34%, our lowest for almost three years.”
Harrison added: “Brokers tell us that two-year fixes are popular with their clients currently, with many wanting the certainty of a fixed-rate product over a shorter term, with the anticipation that borrowing will be cheaper in two years.
“We’ve launched these products in response to this input so I’m sure they will be well received by the market and support much-needed investment in privately rented homes.”
