New BTL mortgages from Paragon offer zero fees and cashback

Paragon Bank has unveiled new five-year fixed-rate buy to let mortgages with attractive features for landlords.

The products have no fees and competitive rates starting from 5.80%, and £750 cashback on some options.

The mortgages are available for up to 70% loan-to-value (LTV) and cater to different types of properties.

Green mortgage offers the lowest rate

Paragon’s green mortgage offers the lowest rate of 5.80% for single self-contained (SSC) properties with EPC rating of A, B or C.

The rate goes up by 5bps for properties with lower EPC ratings.

For Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUB), the rate is 6.05%.

The interest coverage ratios (ICR) are based on the initial rates.

The products are open to landlords who apply as limited companies or in personal name in England, Scotland and Wales.

‘Buying or remortgaging higher value properties’

Louisa Sedgwick, Paragon’s commercial director, said: “While we know that initial rates starting at 5.80% won’t work for all borrowers, charging no product fees can make the mortgages we’ve launched today really appealing for others, particularly those buying or remortgaging higher value properties.

“We’ve also introduced £750 cashback on selected products which could be used towards legal costs, for example.”

She adds: “We are delighted to see swap rates continuing to fall this week, highlighting how an element of stability is returning to the mortgage market, enabling us to adjust our range making our products more attractive to landlords.”

To find out more, including Annual Percentage Rates of Change (APRC) and Early Redemption Charges, please visit the Paragon website.

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below: