Paragon cuts fixed-rate BTL rates by 15bps

Paragon Bank has reduced rates by 15bps across its fixed-rate BTL mortgage products in both its core and tailored propositions, with pricing now starting from 3.4%.

The reductions apply to two-year and five-year fixed-rate mortgages for purchasing or remortgaging single self-contained properties, HMOs and MUBs. The products are available through Paragon’s core range, with selected options also offered through its tailored proposition.

At 75% LTV, two-year fixed rates start from 3.4% on Paragon’s green mortgage range for single self-contained properties with EPC ratings of A to C.

Equivalent products for properties with EPC ratings of D or E start from 3.45%. Both options carry a 5% product fee and include £500 cashback.

For landlords financing HMOs or MUBs, two-year fixed rates at 75% LTV begin at 3.55%, also with a 5% product fee and £500 cashback.

Alternative products are available with 3% or nil product fees, with rates starting from 4.55% and 6.05% respectively.

Five-year fixed rates at 75% LTV start from 4.8% on green mortgage products, with equivalent products for properties rated EPC D or E available from 4.85%.

These products carry a 5% fee and include £1,000 cashback. Five-year fixed rates for HMOs and MUBs start from 4.95%, also with a 5% fee and £1,000 cashback.

The wider range includes nil-fee, percentage-fee and fixed-fee options across products at 60%, 70%, 75% and 80% LTV, giving brokers a choice of fee structures when assessing the overall cost of borrowing for landlord clients.

All products include a free mortgage valuation. There is no application fee on mortgages for single self-contained properties, while products for HMOs and multi-unit blocks carry a £299 application fee.

Rates on products available through Paragon’s tailored proposition have also been reduced, supporting BTL applications that fall outside standard lending criteria.

At 75% LTV, tailored two-year fixed rates start from 5.15% for green mortgage-eligible single self-contained properties and 5.3% for HMOs and MUBs.

Five-year fixed rates begin at 5.55% and 5.7% respectively, with the five-year products including £1,000 cashback.

James Harrison, mortgages product manager at Paragon Bank (pictured above), said: “These reductions provide landlords with lower pricing across a broad selection of two-year and five-year fixed products, covering both standard and more specialist property types.

“The range has been structured to provide a choice of rates and product fee arrangements, including nil-fee, percentage-fee and fixed-fee mortgages.

“Free valuations across the range, alongside no application fee on products for single self-contained properties, also enables brokers to consider the upfront costs as well as the rate and fee structure when discussing requirements with landlord clients.”