"Brokers tell us that two-year fixes are popular with their clients currently, with many wanting the certainty of a fixed rate product over a shorter term, with the anticipation that borrowing will be cheaper in two years."
- James Harrison, mortgages product manager at Paragon Bank
Paragon Bank has reduced rates across its two-year fixed-rate buy-to-let mortgages by 0.30%, with rates now starting at 3.34% - the lowest since May 2022.
The 3.34% rate is available at up to 70% LTV for single self-contained (SSC) properties with Energy Performance Certificate (EPC) ratings of A-C. These products are subject to Interest Coverage Ratios of 5.50% and a 5% fee.
Paragon is also offering two-year fixed-rates at up to 75% LTV for the purchase or remortgage of SSCs. Rates start at 4.34% on Paragon’s green mortgage, rising by 5bps for homes with lower EPC ratings of D or E. A fee-free option is also available with rates starting at 5.84%. These products have ICRs set at two percentage points higher than initial rates.
Corresponding products are also available for HMOs and multi-unit blocks (MUBs), with rates set at 3.59% on the 5.00% fee product, 4.59% on the 3% fee and 6.09% on the fee-free mortgage.
The products come with a free valuation and are subject to a £299 application fee. They are suitable for landlords purchasing or remortgaging properties as individuals or through limited company structures in England, Scotland and Wales.
James Harrison, mortgages product manager at Paragon Bank, said: “We’re really pleased to reduce rates on two-year fixes, taking 30bps off across the range. It’s great to be able to offer landlords rates that start at 3.34%, our lowest for almost three years.
“Brokers tell us that two-year fixes are popular with their clients currently, with many wanting the certainty of a fixed rate product over a shorter term, with the anticipation that borrowing will be cheaper in two years. We’ve launched these products in response to this input so I’m sure they will be well received by the market and support much-needed investment in privately rented homes.”
