Paragon Bank launches new green buy to let mortgages

Paragon Bank launches new green buy to let mortgages

0:07 AM, 1st February 2024, About 4 months ago

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Paragon Bank has announced the launch of new five-year fixed-rate products for buy to let landlords with properties that have high energy efficiency ratings.

The products are available on Paragon’s 5% fee option, which is suitable for the purchase or remortgaging of single self-contained (SSC) properties that have an energy performance certification (EPC) of A-C.

These properties are categorised as ‘green’ by the bank.

‘We know that many are more positive’

Paragon’s commercial director, Louisa Sedgwick, said: “Speaking to both brokers and landlords, we know that many are more positive than they were during last year and we’re already seeing this reflect in business levels.

“This reinforces our belief that landlords want to invest in the sector in response to continued strong levels of tenant demand.”

She added: “We’re aiming to support this by providing landlords with more choice, offering 5% and nil fee products as well as options that include £750 cashback, which can be used to cover legal expenses, for example.”

Rates for the green SSC products

The rates for the green SSC products start at 4.89%, and for properties with lower EPC ratings, the rates increase to 4.94%.

For Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUB), the rates are 5.14%.

The specialist lender is also offering nil fee options, with £750 cashback available on selected mortgages.

The rates for the nil fee options are 5.94% for the green SSC products, 5.99% for the lower EPC products, and 6.19% for the HMO and MUB products.

All of the products have interest coverage ratios (ICRs) calculated in line with initial rates.

They are offered at up to 75% loan-to-value (LTV) for landlords applying through limited company structures or in personal name in England, Scotland and Wales.

Lower rates on Suffolk Building Society’s five-year offers

Meanwhile, expat landlords can enjoy lower rates on Suffolk Building Society’s five-year offers, which have been reduced by up to 0.14%.

The fixed rate is 5.95% for five years, followed by the standard variable rate.

The loan-to-value ratio is 80%, with a minimum of £75,000 and a maximum of £1m. The fees are £199 for application and £1,499 for completion.

Buy to let switcher loans from The Mortgage Works

Selected buy to let switcher loans from The Mortgage Works have new lower rates, starting from 3.84% and dropping by up to 0.2%. The options include:

  • Two-year fixes at 3.99%, with a 65% LTV and a £3,995 fee, down by 0.05%
  • Three-year fixes at 4.39%, with a 65% LTV and a £1,495 fee, down by 0.1%
  • Five-year fixes at 4.49%, with a 65% LTV, down by 0.15%.

Relaxed stress rates from Newcastle Intermediaries

Property investors can benefit from lower fixed rates and relaxed stress rates from Newcastle Intermediaries.

The new rates include two-year fixes at 5.10% (APRC 6.9%) up to 80% LTV, with a £999 product fee and early repayment charges of 2% until 31/07/2025 and 1% until 31/07/2026.

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

Contact Brooklands Commercial Finance

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