"In addition to this rate cut, on products where a £750 application fee is charged, rates are lower compared to our core range."
- Louisa Sedgwick, mortgages commercial director at Paragon Bank
Paragon Bank has reduced rates on its core range of buy-to-let mortgages, taking 15bps off 10 products, in addition to launching six new five-year fixed rate mortgages with no fee and 5% fee options.
Paragon has launched three 5% fee five-year fixes with rates starting at 4.60% for the purchase or remortgage of properties with EPC ratings of A-C. This increases to 4.65% on Paragon’s standard product, for homes with EPC ratings of D or E, and 4.80% for houses in multiple occupation (HMOs) or multi-unit blocks (MUBs).
Rates on the corresponding fee-free products are set at 5.65% for the EPC A-C product, 5.70% on the standard mortgage and 5.90% when purchasing or remortgaging HMOs and MUBs.
These products are available up to 65% LTV and are subject to a £750 application fee, with £750 cashback on completion.
Interest coverage ratios are calculated at 5.00% for the 5% fee products and in line with initial rates on the nil fee options.
Louisa Sedgwick, mortgages commercial director at Paragon Bank, said: “We’re reducing rates across our core range, as well as introducing some flexible new five-year options to offer landlords more choice. In addition to this rate cut, on products where a £750 application fee is charged, rates are lower compared to our core range. Customers will receive £750 cashback on completion, offering competitive pricing for landlords who are confident that their application will go through.
“To get a better idea of whether the property will stack up, we always encourage brokers to talk through cases with us and take advantage of our 'pre-valuation assessment’, where one of our qualified surveyors looks at the property to assess whether it's fit for us to lend on. As well as helping the landlord feel more confident that we will be happy to proceed, it also helps brokers know that by making a £750 upfront fee as a commitment, their client is serious about completing their mortgage application.”
