"Since the start of the year, we’ve seen a steady increase in the proportion of landlords looking for two-year fixed-rate products"
- Louisa Sedgwick, mortgages commercial director at Paragon Bank
Paragon Bank has refreshed its range of two-year buy-to-let fixed rate mortgages, with rates now starting at 3.89%.
The 3.89% rate is for single self-contained properties with A-C EPC ratings, increasing to 3.94% for homes with EPC D or E. Available at 70% LTV, these products come with a 5.00% fee.
At 75% LTV, Paragon is offering two-year fixed-rate products from 4.80% with a 3% product fee. A 1.50% fee product is also available, with rates set at 5.55% for the EPC A-C mortgage and 5.60% for EPC D and E.
Landlords financing the purchase or remortgage of houses in multiple occupation (HMOs) or multi-unit blocks (MUBs) are offered the same suite of products, with rates starting at 4.14% at 70% LTV and 5.05% at 75% LTV.
Interest Coverage Ratios (ICRs) are calculated at initial rate plus two percentage points.
The products are available for individual and limited company applications in England, Scotland and Wales, include a free mortgage valuation and incur a £299 application fee.
The latest round of rate reductions follows the launch of limited edition five-year fixed rate buy-to-let products last week.
Louisa Sedgwick, mortgages commercial director at Paragon Bank, said: “Since the start of the year, we’ve seen a steady increase in the proportion of landlords looking for two-year fixed-rate products and we have responded by launching these competitive rates, with a range of LTVs and fees, providing landlords with plenty of choice.
“Some landlords are keen to fix for a shorter duration than the traditional five-year term so they have the ability to reassess the market in a couple of years, when it is anticipated that rates will be lower.”
