Paragon Bank cuts buy to let mortgage rates for landlords

Paragon Bank cuts buy to let mortgage rates for landlords

10:31 AM, 5th September 2023, About 6 months ago 6

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Paragon Bank has unveiled a major product refresh that has seen rates reduced across 22 buy to let mortgage products, with fixed deals now starting at 4.59%.

The rate cuts apply to a range of loan-to-value (LTV) bands for both portfolio – landlords who own four or more buy-to-let properties with mortgages – and non-portfolio landlords, those with fewer than four.

One of the highlights of the product refresh is a 26-basis points reduction on Paragon’s 70% LTV two-year fixed rate product, which is now priced at a market-leading 4.59%.

This rate is available to portfolio landlords for the purchase or remortgage of single self-contained homes with energy efficiency ratings of A-C.

‘Landlords want options’

Paragon’s commercial director, Louisa Sedgwick, said: “In this market, landlords want options, so we are pleased to offer these competitive rates with a mix of terms, LTVs and fees.

“With a range of different indicators suggesting that the UK economic outlook is strengthening, the stabilisation of swap rates has continued and, as a result, we’ve been able to again reduce rates on some of our key products.”

She added: “The most exciting of these is our 70% LTV two-year fix with a rate of 4.59%, making it the best-priced product in the market for limited company buy to let.”

Rates for properties with energy ratings of D or E

Rates increase slightly to 4.64% on properties with energy ratings of D or E and 4.84% on houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).

The product fee on the two-year fixes is set at 5% and interest coverage ratios (ICR) are calculated at two percentage points above initial rates.

All products include a free valuation and are available to landlords applying as individuals or within limited company structures in England, Scotland and Wales.

There’s more information about the new BTL mortgage rates on Paragon’s website.


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Comments

IanF

18:04 PM, 5th September 2023, About 6 months ago

So if the product fee is 5% for a 2 year fixed does that not increase the overall cost to the equivalent of over 7% interest rate. Is this is just a dressing up of rip off rates for landlords?

Colin Dartnell

20:36 PM, 5th September 2023, About 6 months ago

Reply to the comment left by IanF at 05/09/2023 - 18:04
I was just going to say exactly the same, complete con!

Fergus Wilson

10:08 AM, 6th September 2023, About 6 months ago

I dealt primarily with Paragon twenty years ago.

They were excellent people to do bisiness with.

Colin Dartnell

21:21 PM, 6th September 2023, About 6 months ago

Reply to the comment left by Fergus Wilson at 06/09/2023 - 10:08
Totally agree, I used them about as long ago, very helpful lenders.

John Parfett

11:03 AM, 10th September 2023, About 6 months ago

Ha ha ha - 5%!!!

DrT

9:10 AM, 17th September 2023, About 6 months ago

Ridiculous 5% fee. On a 5yr product it would make sense but not on a 2yr. Do they think we are stupid.
Why don't they just offer a fair rate with a fair fee instead of all this sneaky nonsense. What next, banks offering 1.9% on a 2yr fixed with a 9.9% fee or even 1% on a 5yr fixed with a 29.9% fee. These front loaded deals allow the fee to be added to the loan which just increases the overall interest being paid back. Remember, banks are not our friend, they represent a ruthless business model of which at some point we have to use.

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