Rates on new BTL mortgages for portfolio landlords start at 4.65%
Specialist lender Paragon Bank has expanded its buy-to-let mortgage offerings for portfolio landlords by introducing six new five-year fixed rate products.
The new products are available for loans up to 65% of the property’s value, with rates starting at 4.65% for properties with ‘A’, ‘B’, or ‘C’ energy performance certificate (EPC) ratings and at 4.7% for properties with lower EPC ratings.
For landlords looking to buy or remortgage houses in multiple occupation (HMO) or multi-unit blocks (MUB), the interest rate is fixed at 4.9%. These products come with a 5% product fee, and the interest coverage ratios (ICRs) are set at 5%.
In addition, Paragon is offering three options without any product fees. These include a green mortgage option at 5.7%, a rate of 5.75% for properties EPC rated ‘D’ or ‘E’, and a higher rate of 5.95% for HMOs and MUBs, with ICRs aligned with these rates.
The new mortgage products are targeted at portfolio landlords – those who already have four or more buy-to-let mortgages, and are available across England, Scotland, and Wales to landlords applying either through limited companies or in their personal names.
“These limited edition products are priced at around 25 basis points lower than our core range and provide more options for landlords looking to expand their portfolio or remortgage existing properties,” said Louisa Sedgwick (pictured), commercial director at Paragon Bank.
“We’re enhancing our range at 65% LTV to provide some attractive options for those who have larger deposits or who would like to leverage the equity in their portfolio to expand, increasing the number of homes that are very much needed to meet strong levels of tenant demand.”
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