Paragon and Aldermore reduce BTL mortgage rates

Paragon Bank and Aldermore have both announced interest rate cuts on their buy to let mortgage products, offering landlords greater choice.

Paragon has reduced rates across its core BTL mortgage range by 15 basis points (bps) on 10 products.

They’ve also launched six new five-year fixed-rate mortgages with both fee and fee-free options.

‘Offer landlords more choice’

The lender’s mortgages commercial director, Louisa Sedgwick, said: “We’re reducing rates across our core range, as well as introducing some flexible new five-year options to offer landlords more choice.

“In addition to this rate cut, on products where a £750 application fee is charged, rates are lower compared to our core range.

“Customers will receive £750 cashback on completion, offering competitive pricing for landlords who are confident that their application will go through.”

Five-year fixed-rate mortgages

Paragon’s new offerings include three, five-year fixed-rate mortgages with a 5% fee.

Rates start at 4.60% for properties with the highest energy performance ratings (EPC A-C).

This increases slightly for standard properties (EPC D-E) and multi-unit properties (HMOs/MUBs).

The fee-free products have slightly higher rates, but all products are available up to 65% loan-to-value (LTV).

They also come with a £750 application fee offset by £750 cashback upon completion.

Paragon also recommends that brokers discuss cases with them and utilise their pre-valuation assessment to ensure a smoother mortgage application process.

Aldermore launches limited edition product and reduces rates

Aldermore has also revealed it is reducing rates across its entire BTL mortgage range by 0.20%.

It has also introduced a new limited-edition five-year fixed-rate product, available up to 65% LTV.

The lender claims the limited-edition product boasts some of the most competitive rates in the market.

Options include a 5.89% fixed rate with no fee, a 5.59% rate with a 1.50% fee, and a 4.89% rate with a 5.00% fee.

Jon Cooper, the director of mortgages at Aldermore, said: “Being a landlord presents unique challenges and we don’t take the loyalty of our landlord customers for granted.

“We’re pleased to introduce our new limited edition product and offer a range of cheaper rates, backing more landlords to go for it in life and business.”

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