Paragon Bank has reduced rates across its 75% loan-to-value (LTV) 2-year fixed-rate buy-to-let mortgage range by 0.11%, with rates now starting at 4.24%.
The new 2-year fixed products are available with either a nil or 3% product fee. Rates begin at 4.24% for the purchase or remortgage of single self-contained (SSC) properties with EPC ratings of A–C, increasing by 0.05% for homes rated D and E.
Loans are also available for landlords financing houses in multiple occupation (HMOs) and multi-unit blocks (MUBs). These are priced at 4.59% with a 3% product fee or 6.09% with no product fee.
All products include free mortgage valuations. SSC mortgages have no application fee, while HMO and MUB options include a £299 application fee.
Interest coverage ratios are calculated at the initial rate plus 2%, and the mortgages are available to landlords operating as individuals or through limited companies in England, Scotland and Wales.
Russell Anderson, commercial director of mortgages at Paragon Bank, said: “We’re reducing rates across our 75% LTV 2-year fixed-rate product range, improving affordability for landlords.
“From speaking to brokers, we know that two-year deals are a popular option, with some landlords looking to fix now and then reassess the market and their businesses in two years’ time when rates are expected to be lower.
“The products are priced competitively and should appeal to experienced, larger landlords, as well as those with 15 or fewer properties who may be able to benefit from a significantly smoother application process, with fewer document requirements following the most recent process and systems enhancements we’ve made.”
