Paragon and Coventry sharpen BTL mortgage deals

Buy to let landlords have been handed more choice as Paragon Bank brings back a feature allowing tracker borrowers to move onto a fixed BTL rate without an early repayment charge.

Also, Coventry for intermediaries has cut every fixed mortgage rate in its range, with reductions of up to 20 basis points.

Paragon’s Track to Fix option applies to Bank Base Rate tracker products for single self-contained properties, houses in multiple occupation and multi-unit blocks.

Existing customers can switch to an available Paragon fixed-rate switch product during the tracker term, subject to eligibility requirements at the time.

Tracker switch option

Paragon’s product manager, James Harrison, said: “We’ve received a positive response since replacing our previous variable rate products with our Bank Base Rate tracker range and we’ve continued to review how we can further strengthen the proposition for brokers and landlords.

“Track to Fix proved a popular feature on our previous discounted variable rate products because it enabled customers to move into a fixed rate without incurring an early repayment charge.”

He added: “By reintroducing the feature to our BBR tracker range, existing customers have another reason to consider these products.

“Landlords can benefit from a mortgage that tracks movements in Bank Rate while retaining the option to switch to a Paragon fixed-rate product at a later date should they wish to take a different approach to managing their borrowing.”

Buy to let tracker rates

Two-year Bank Base Rate tracker mortgages for single self-contained properties are available at up to 75% loan-to-value, with rates starting at 5.10% and a 1.50% fee.

A 0.75% fee option starts at 5.47%.

For HMOs and multi-unit blocks, rates start at 5.45% with a 1.50% fee, while the 0.75% fee product starts at 5.82%.

Paragon introduced the tracker range as a replacement for its previous variable products linked to its Standard Variable Rate, with Track to Fix previously offered on discounted variable deals.

Coventry cuts fixed rates

Coventry for intermediaries has meanwhile reduced all of its fixed-rate BTL mortgage deals for new and existing customers, with cuts of up to 20 basis points.

One buy to let option is a five-year fix at 5.10% to 31 December 2031, available at 75% LTV with a £1,999 fee for limited company remortgages on properties with an EPC rating of A-C.

Coventry’s corporate account manager, Ben Williams, said: “We’re pleased to be reducing rates across our fixed rate range, giving brokers more competitive options to support a wide range of clients.

“These latest changes reflect our ongoing commitment to helping brokers find the right solutions for their customers in a changing market.”

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