Paragon and Fleet cut BTL mortgage rates

Paragon Bank and Fleet Mortgages have both announced reductions to their buy to let (BTL) mortgage rates.

Paragon has trimmed 30 basis points (bps) from its entire two-year fixed-rate range, bringing rates down to a low of 3.34% – the lowest seen since May 2022.

This applies to purchase and remortgage products up to 75% loan-to-value (LTV), with various fee options available.

‘Reduce rates on two-year fixes’

Paragon’s mortgages product manager, James Harrison, said: “We’re really pleased to reduce rates on two-year fixes, taking 30bps off across the range.

“It’s great to be able to offer landlords rates that start at 3.34%, our lowest for almost three years.”

He added: “Brokers tell us that two-year fixes are popular with their clients currently, with many wanting the certainty of a fixed-rate product over a shorter term, with the anticipation that borrowing will be cheaper in two years.

“We’ve launched these products in response to this input so I’m sure they will be well received by the market and support much-needed investment in privately rented homes.”

Fleet delivers lower rates of five-year fixes

Meanwhile, Fleet Mortgages has focused its reductions on five-year fixed rates for Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFB).

The lender has cut rates by up to 25 bps across its entire five-year HMO/MUFB range.

Its 65% and 75% LTV products have been reduced by 20bps, with the zero-fee 75% LTV option now at 5.89%.

Fleet also continues to offer its £1,000 cashback incentive to landlords who improve the EPC level of their property to a C or above during their initial fixed-rate period.

HMO and MFUB property investment opportunities

Fleet’s chief commercial officer, Steve Cox, said: “Landlords are increasingly looking at the property investment opportunities that exist in the HMO and MUFB sector, as they seek the higher yields these type of properties often deliver.

“This is why we continue to offer a specific product range tailored to these, and we’re pleased to be able to reduce pricing across all our five-year fixes, at both 65% and 75% LTV, by up to 25 basis points.

“This will help borrowers with their affordability and provides advisers with an increasingly competitive product offering for those landlord clients either seeking to purchase or refinance their HMO or MUFB properties.”

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