Paragon Bank has unveiled a new range of 5-year fixed-rate buy-to-let mortgages, characterised by the absence of product fees, competitive starting rates from 5.80%, and a cashback offer of £750 on selected products.
These mortgages are available for portfolio landlords with a loan-to-value (LTV) ratio of up to 75%.
The rates begin at 5.80% for Paragon’s green mortgage, which is applicable for the purchase or remortgage of single self-contained (SSC) properties with an EPC rating of A, B, or C. Properties with lower EPC ratings see a slight rate increase of 5 basis points (bps).
For landlords interested in Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUB), the rates start at 6.05%.
Paragon Bank calculates Interest coverage ratios (ICR) in line with the initial rates. The products are accessible to landlords applying either through limited company structures or in personal names across England, Scotland, and Wales.
Louisa Sedgwick, commercial director at Paragon Bank, comments on the new offerings: “While we know that initial rates starting at 5.80% won’t work for all borrowers, charging no product fees can make the mortgages we’ve launched today really appealing for others, particularly those buying or remortgaging higher value properties. We’ve also introduced £750 cashback on selected products which could be used towards legal costs, for example.”
Sedgwick also notes the current market conditions, adding: “We are delighted to see swap rates continuing to fall this week, highlighting how an element of stability is returning to the mortgage market, enabling us to adjust our range making our products more attractive to landlords.”
