Paragon Bank has introduced new limited edition two-year fixed-rate buy-to-let mortgage products, aiming to strengthen its offering to landlords across the UK.
These fresh additions to Paragon’s portfolio come at a time when many landlords are seeking competitive rates, particularly those with energy-efficient properties.
The newly launched two-year fixed rate mortgages are particularly attractive for properties holding an EPC rating of A to C. Starting from as low as 3.45%, these rates are among the most competitive currently available in the market.
To access these rates, landlords will need to pay a 4.00% product fee. Despite this, the overall package positions Paragon favourably when compared to similar offerings from other lenders.
Available for single self-contained (SSC) properties, these mortgages can be taken out for either purchase or remortgage purposes, with a maximum loan-to-value (LTV) of up to 70%.
In a move designed to appeal to landlords further, Paragon has chosen to remove the application fee entirely for SSC mortgages, which can help reduce upfront costs.
For Houses in Multiple Occupation (HMOs) and multi-unit blocks (MUBs), Paragon is offering a comparable product. This deal comes with a slightly higher interest rate of 3.80%, reflecting the typically more complex nature of these property types.
ICRs for SSC mortgages are calculated at 5.5%, while for HMOs and MUBs, the stress rate is a little higher at 5.80%. This ensures affordability checks remain robust and responsible.
To sweeten the offer, customers who complete on one of these limited edition mortgages will also benefit from £500 cashback. This extra financial boost could help with immediate property costs or improvements.
Free mortgage valuations are another feature included in the package, saving landlords additional money during the process.
James Harrison, who is the Mortgages Product Manager at Paragon Bank, shared his views on the launch. He noted that the UK economy is starting to find stability after a turbulent period.
According to Harrison, this has led to a gradual fall in swap rates, which are a key factor in determining fixed mortgage pricing. This drop has given Paragon the opportunity to reduce rates and provide more appealing deals.
Harrison added that two-year fixed rate products remain especially popular among landlords, as brokers frequently report. Shorter terms can give landlords flexibility to react to further changes in the market.
He emphasised that beyond just competitive pricing, removing the application fee for SSC mortgages and offering cashback and free valuations create a package that should catch the eye of many landlords.
By broadening their range with these limited edition products, Paragon Bank aims to support landlords who invest in energy-efficient properties, while making buy-to-let finance more affordable and attractive.
Overall, these new deals reflect Paragon Bank’s commitment to adapting to market trends and listening to what landlords and brokers are currently looking for in the buy-to-let sector.
“This week we announced a streamlined process for landlords with up to 15 properties, made possible by the launch of our bespoke mortgage application platform, requesting fewer supporting documents and speeding up application time. It’s a significant change and means a broader spectrum of brokers and landlords are able to benefit from these competitive products.”