The feature allows borrowers to switch from a discounted SVR product to a fixed rate product without paying ERCs
Paragon Bank has launched a flexible ‘track to fix’ mortgage feature among its refreshed product range.
The feature enables buy-to-let landlords to select a new discounted variable rate mortgage, which can be switched to an available Paragon fixed rate switch product at any given time during the term, incurring no early repayment charges (ERCs).
The specialist buy-to-let lender said the feature is part of an extensive refresh of its product range, with new or revised options across fixed, variable, and further advance products.
For portfolio landlords – those with four or more mortgaged buy-to-let properties, Paragon is adding two new two-year fixed rate mortgage products to its range, with initial rates starting at 4.95%. Discounts on variable rate mortgages have also been revised, with increased discounts on 12-month, two- and three-year standard variable rate (SVR) products.
Paragon, which has recently announced strong growth in buy-to-let lending, has new further advance products launched with both fixed and discounted variable rate options available too. Selected products include free mortgage valuations and are available on houses in multiple occupation, multi-unit blocks, and single self-contained properties.
“We’re delighted to share our refreshed product range with the market, and are particularly excited about the introduction of a ‘track to fix’ feature,” Moray Hulme (pictured), director for mortgage sales at Paragon Bank, said. “This allows borrowers to switch from one of our new discounted standard variable rate products to one of our fixed rate products without paying ERCs.
“This enables our customers to secure the finance they need now, monitor the market, and then potentially fix at a rate that works for them. We know that the fluidity seen in the market recently means that some borrowers want to strike a balance between flexibility and certainty, which this feature provides.”
Full details, including ERCs, reversion rates, APRCs, and product fees, can be found on the product guides available on the Paragon Bank website.