Landlord mortgage rates fall across lenders

Landlords looking to fix their borrowing costs are being offered lower mortgage pricing across standard, specialist and large portfolio products.

Paragon Bank has cut fixed rates by 15 basis points across its Core and Tailored ranges, with pricing starting from 3.40%.

United Trust Bank (UTB) has reduced two-year fixed rates by up to 50 basis points, while Rely has introduced discounted products for portfolio landlords.

The deals cover single properties, houses in multiple occupation (HMOs), multi-unit blocks (MUBs) and multi-unit freehold blocks (MUFBs), depending on the lender.

Lenders explain reductions

Paragon mortgage product manager James Harrison 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.”

Gene Clohessy, the director of buy to let and bridging at UTB, said: “We’re building real momentum in Buy-to-Let and these rate reductions are another important step in making UTB an even stronger option for brokers and their landlord customers.

“Price is important, but brokers also need lenders with sensible criteria, experienced and knowledgeable people and the appetite to understand a case.”

Paragon mortgage options

At 75% loan to value (LTV), Paragon’s two-year Green Mortgage rates start at 3.40% for properties with EPC ratings of A to C, while rates for EPC D or E homes begin at 3.45%.

Both products carry a 5% fee, include £500 cashback and are joined by HMO and MUB rates starting at 3.55%, with alternatives from 4.55% carrying a 3% fee or from 6.05% with no product fee.

Five-year Green Mortgage rates at 75% LTV start from 4.80%, rising to 4.85% for EPC D or E properties and 4.95% for HMOs and MUBs, with a 5% fee and £1,000 cashback.

Tailored two-year rates start at 5.15% for eligible single properties and 5.30% for HMOs and MUBs, while corresponding five-year rates begin at 5.55% and 5.70%.

UTB and Rely deals

UTB’s standard two-year fixed rates now start at 3.89%, with specialist HMO and MUFB products available from 4.04%.

Its five-year rates remain at 5.69% for standard properties and 5.99% for specialist cases, while previous ownership experience is no longer required for eligible HMO and MUFB applications.

The lender has also raised its maximum exposure for portfolio landlords to 10 buy to let loans and £3 million for each applicant.

Rely’s limited-edition two- and five-year fixes for landlords with at least 11 properties carry a 5% fee at 75% LTV and are priced up to 40 basis points below its standard range, while new products at 60% and 65% LTV offer discounts of up to 15 basis points for landlords with four or more mortgaged properties.