Paragon Bank unveils its new limited-edition five-year fixes

Paragon Bank has announced the launch of four limited edition five-year fixed rate buy-to-let mortgages.

The new products are available to portfolio landlords – that is those with four or more buy-to-let mortgaged properties – in England, Scotland and Wales.

The products have up to 75% loan-to-value (LTV), with a maximum loan of £4 million and an Interest Coverage Ratio (ICR) calculation rate of 5.50%.

Product rates start at 4.90%

The product rates start at 4.90% when purchasing or remortgaging properties with Energy Performance Certificate (EPC) ratings of A-C, rising to 4.95% on homes with energy efficiency ratings of D or E.

These two products incur a 3% fee.

Two further products come with a flat fee of £2,495. Rates are set at 5.25% and 5.30%, with the former for EPC rated A-C homes and the later for properties with (EPC) ratings of D or E.

Paragon says that the new offerings come with free valuations and the mortgages are suitable for financing the purchase or remortgage of single self-contained properties, HMOs and multi-unit blocks.

‘Launch of these limited-edition products’

Moray Hulme, Paragon’s director for mortgage sales, said: “The launch of these limited-edition products sees us replace four of our five-year fixes with mortgages that feature lower rates.

“This improves our range of fixed rate products so is good news for portfolio landlords who want some certainty when remortgaging one of their existing properties or purchasing homes in response to what is now sustained strong tenant demand.”

The Annual Percentage Rate of Change (APRC) on the products is 7.10% and each is subject to an application fee of £299.