2-year 70% LTV Buy to Let rates reduced 0.45% by Paragon

2-year 70% LTV Buy to Let rates reduced 0.45% by Paragon

14:35 PM, 14th August 2023, About 9 months ago 2

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Paragon Bank has reduced its core two-year fixed rate buy-to-let mortgages starting at 4.85% for a maximum 70% Loan to Value (LTV) dependent on EPC rating

Rates on the two-year fixes are priced at 4.85% for single self-contained properties with EPC ratings of A-C and 4.90% where the EPC is rated D or E. Interest coverage ratios (ICR) are calculated at 6.85% and 6.90% respectively.

Paragon is also offering a two-year fixed rate buy-to-let mortgage for houses in multiple occupation (HMO) and multi-unit blocks (MUB), with interest charged at 5.10% and ICR calculated at 7.10%.

The products incur a 5% fee and are available to portfolio landlords at up to 70% loan-to-value. The mortgages are suitable for landlords applying as individuals or through limited company structures in England, Scotland and Wales.

Louisa Sedgwick, Commercial Director at Paragon Bank, said: “Our most recent rate reduction sees us quickly respond to the current stability of the swaps market and take 45bps off our core two-year buy-to-let fixed rate, offering our customers some very competitively priced products. These should appeal to borrowers who would like the certainty of a fixed rate product, but over a shorter two-year period.

“While five-year fixes remain popular, we have seen demand grow for two-year options. This could be driven by more landlords choosing to reassess the market in two years’ time, with the recent easing of inflation increasing confidence that we are nearing the current cycle of base rate rises and the expectation that this will play through to mortgage rates during the period.”


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Comments

JaSam

10:51 AM, 15th August 2023, About 9 months ago

Good to see them slowly coming down but for me 5 year fixed needs to be at least 5% and the arrangement fees need to drop significantly too before I consider more BTLs.

GlanACC

8:39 AM, 17th August 2023, About 9 months ago

I have never based my mortgages on purely the interest rate, the 'administration' fee could often (and did often) add an extra 1% to 2% on the cost of the loan. add to this the lender often wants the properties revalued by an assessor which you pay for and remortgageing every 2 years is really expensive. I managed to get a 10 year fixed rate (can you still get those) and it save me an awful lot of pain.

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