"Landlords keep a keen eye on the economy and we know there is an anticipation that rates will continue on their current downward trajectory."
- James Harrison, mortgage product manager at Paragon Bank
For the first time in over two years, Paragon Bank has launched a two-year fixed-rate buy-to-let mortgage with no fee, in addition to adding a two-year discounted variable product with a low fee.
Paragon’s fee-free two-year fixed rate product starts at 6.10% for the purchase or remortgage of single self-contained properties with EPC ratings of A-C. The standard option, for EPC D or E rated properties, is priced at 6.15%, while houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) are 6.35%.
The specialist lender has also added a new two-year discounted variable rate product to its range, tracking Paragon’s SVR minus 3.16% on EPC A-C rated properties and 3.11% on the standard range. The mortgage is available with a 1.25% fee, with rates starting at 6.19% for the green option, 6.24% on the standard product and 6.44% for HMOs and MUBs. This complements Paragon’s 2.50% fee discounted variable rate option.
Customers utilising Paragon’s discounted and standard SVR products also have the option to track to fix. At any time during the product term, a landlord can apply to switch to any available Paragon fixed-rate product without incurring an early repayment charge.
Available at up to 75% LTV, Interest Coverage Ratios on these products are calculated at initial rate plus 2 percentage points.
The products are available for individual and limited company applications in England, Scotland and Wales, include a free mortgage valuation and a £299 application fee.
James Harrison, mortgage product manager at Paragon Bank, said: “Landlords keep a keen eye on the economy and we know there is an anticipation that rates will continue on their current downward trajectory.
“This makes two-year products more appealing so we’re providing more choice across the term, launching a nil-fee fixed rate option and a discounted variable rate. The latter has a lower fee than our existing 2.50% fee product and is available with track to fix. This makes it a great choice for customers who want flexibility, with the option to choose a fixed rate product within the next two years without paying an early repayment charge.”
