Paragon Bank has unveiled a new two-year fixed-rate BTL mortgage with no fee, as well as a two-year discounted variable product with a low fee.
The no-fee two-year fix starts at 6.10% for the purchase or remortgage of single self-contained properties with EPC ratings of A-C, going up to 6.15% for properties with a D or E EPC rating, and 6.35% for HMOs and MUFBs.
Meanwhile, the discounted variable rate product is 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.
Both new products are available at maximum 75% LTV, with ICR calculated at initial rate + two percentage points.
The options are available for individual and limited company applications in England, Scotland and Wales, include a free mortgage valuation and incur a £299 application fee.
Customers utilising Paragon’s discounted and standard SVR products also have the option to switch to any of the bank’s available fixed-rate products without incurring an ERC.
James Harrison, mortgage product manager at Paragon Bank (pictured above), 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 ERC.”
