"It’s fantastic to be able to offer some market-leading rates on two-year fixed deals, which brokers tell us are a popular option currently"
- James Harrison - Paragon Bank
Paragon Bank has announced that it has introduced a set of limited edition two-year fixed-rate buy-to-let products, offering what it describes as market-leading rates alongside new incentives for landlords.
The new rates begin at 3.45% for single self-contained (SSC) properties with an EPC rating of A to C, carrying a 4.00% product fee. This pricing applies to loans of up to 70% loan-to-value (LTV) for both purchase and remortgage. For SSCs, Paragon has removed the application fee.
In addition to the rate reduction, Paragon is offering £500 cashback on completion and free mortgage valuations. Interest coverage ratios (ICRs) on these products are calculated at 5.5%.
An equivalent two-year product is available for Houses in Multiple Occupation (HMOs) and multi-unit blocks (MUBs), priced at 3.80% and stressed at 5.80%.
“With the economy settling a little following recent disruption, swap rates have gradually reduced, enabling us to lower rates for landlord customers,” said James Harrison, mortgages product manager at Paragon Bank. “It’s fantastic to be able to offer some market-leading rates on two-year fixed deals, which brokers tell us are a popular option currently. Removing the application fee on our SSC products and offering cashback and free mortgage valuations also provides landlords with some attractive options.”
Harrison also pointed to recent process improvements aimed at landlords with portfolios of up to 15 properties.
“This week we announced a streamlined process for landlords with up to 15 properties, made possible by the launch of our bespoke mortgage application platform, requesting fewer supporting documents and speeding up application time,” he explained. “It’s a significant change and means a broader spectrum of brokers and landlords are able to benefit from these competitive products.”
