Paragon Bank has cut fixed-rate buy-to-let mortgage rates by 15 basis points across its Core and Tailored propositions, with pricing now starting from 3.40%.
The reductions apply to two-year and five-year fixed-rate products for purchase and remortgage across single self-contained properties, Houses in Multiple Occupation (HMOs) and Multi-Unit Blocks (MUBs). Products are available through Paragon's Core range, with selected options also offered through its Tailored proposition.
At 75% loan-to-value (LTV), two-year fixed rates start from 3.40% on Green Mortgage products for single self-contained properties with EPC ratings of A to C. Equivalent products for properties rated D or E start from 3.45%. Both carry a 5% product fee and include £500 cashback.
For landlords financing HMOs or MUBs, two-year fixed rates at 75% LTV begin at 3.55%, also with a 5% product fee and £500 cashback. Alternative options with 3% or nil product fees are available, with rates starting from 4.55% and 6.05% respectively.
Five-year fixed rates at 75% LTV start from 4.80% on Green Mortgage products for single self-contained properties, with equivalent products for EPC D or E properties available from 4.85%. Both carry a 5% fee and include £1,000 cashback. Five-year fixed rates for HMOs and MUBs start from 4.95%, also with a 5% fee and £1,000 cashback.
The wider Core range covers nil-fee, percentage-fee and fixed-fee options at 60%, 70%, 75% and 80% LTV, giving landlords a choice of fee structures when assessing overall borrowing costs. All products include a free mortgage valuation. There is no application fee on mortgages for single self-contained properties; HMO and MUB products carry a £299 application fee.
Paragon's Tailored proposition, which covers buy-to-let applications outside standard lending criteria, has also seen rates reduced. At 75% LTV, Tailored two-year fixed rates start from 5.15% for Green Mortgage-eligible single self-contained properties and from 5.30% for HMOs and MUBs. Five-year fixed rates begin at 5.55% and 5.70% respectively, with £1,000 cashback included on five-year products.
"These reductions provide landlords with lower pricing across a broad selection of two-year and five-year fixed products, covering both standard and more specialist property types," said James Harrison, mortgages product manager at Paragon Bank (pictured).
"The range has been structured to provide a choice of rates and product fee arrangements, including nil-fee, percentage-fee and fixed-fee mortgages. Free valuations across the range, alongside no application fee on products for single self-contained properties, also enables brokers to consider the upfront costs as well as the rate and fee structure when discussing requirements with landlord clients."
