It also reduces selected rates by up to 35bps
Specialist lender Paragon Bank has introduced a series of offers on its two-year fixed rate buy-to-let mortgages, including its lowest rate in the past 18 months and cuts of up to 35 basis points (bps).
The lender has unveiled a new 70% loan-to-value (LTV) two-year fixed rate mortgage product, which starts at 3.94% for single self-contained (SCC) properties with energy performance certificate (EPC) ratings of ‘A’ to ‘C’.
The rate, which slightly increases to 3.99% for SCC properties with ‘D’ and ‘E’ EPC ratings and to 4.19% for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), is Paragon’s lowest for a two-year fixed term in over a year and a half. The product, which carries a 5% fee, is tailored for portfolio landlords.
“Although there is still work to do to stabilise the economy, things do seem to be heading in the right direction and the general feeling is that rates are coming down,” said Louisa Sedgwick (pictured), commercial director at Paragon Bank. “This means that we’re seeing landlords seek the stability of a fixed rate but over the shorter two-year term so they can reassess the market in a couple of years’ time.
“With it being Valentine’s Day, we wanted to show some love to our landlord customers, so we’re offering our lowest rate on two-year fixes for new customers in over 18 months and have taken 35bps off our 3% fee two-year product too.”
This reduction was made on the specialist lender’s 75% LTV two-year fixed rate products, which now start at 4.85% for properties with green EPC ratings, 4.90% for standard properties, and 5.10% for HMOs and MUBs, all with a 3% fee and available to portfolio landlords.
Paragon, which was recently added to the FIBA lender panel, offers the same 75% LTV products, with rates beginning at 4.85% for green properties and 4.90% for standard properties, to non-portfolio landlords with a 3% fee.
Interest coverage ratios (ICRs) are calculated at two percentage points above the initial rates.
Paragon’s mortgage products are available to landlords applying either through limited company structures or in their personal name across England, Scotland, and Wales.
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