Paragon Bank offers new BTL mortgage options

Paragon Bank has expanded its buy to let mortgage range with a new two-year fixed-rate product with no fee and a discounted variable rate product.

This is the first time in more than two years that the lender has offered a nil-fee two-year fixed-rate option.

The two-year fixed-rate product starts at 6.10% for properties with an EPC rating of A-C.

The standard option for EPC D or E rated properties is priced at 6.15%, while HMOs and MUBs are available at 6.35%.

Providing more choice

The bank’s product manager, James Harrison, said: “Landlords keep a keen eye on the economy and we know there is an anticipation that rates will continue on their current downward trajectory.

“This makes two-year products more appealing so we’re providing more choice across the term, launching a nil-fee fixed rate option and a discounted variable rate.

“The latter has a lower fee than our existing 2.50% fee product and is available with track to fix.”

Two-year discounted variable rate product

Paragon is also launching a new two-year discounted variable rate product which tracks its Standard Variable Rate (SVR) minus 3.16% for EPC A-C rated properties and 3.11% for the standard range.

The mortgage is available with a 1.25% fee, with rates starting at 6.19% for the green option, 6.24% on the standard product, and 6.44% for HMOs and MUBs.

Customers who choose Paragon’s discounted and standard SVR products also have the option to track to fix.

This means they can switch to any available Paragon fixed-rate product without incurring an early repayment charge at any time during the product term.

The new products are available at up to 75% loan-to-value, with interest coverage ratios calculated at the initial rate plus 2 percentage points.

They are available for individual and limited company applications in England, Scotland and Wales, and include a free mortgage valuation and a £299 application fee.

TML announces rate reductions

Meanwhile, The Mortgage Lender (TML) has announced rate reductions across its buy to let products.

TML’s BTL 5-year fixed-rate Standard and HMO/MUB products have been reduced by 10 basis points. The products now start at 4.86% and 5.06%, respectively.

Steve Griffiths, TML’s chief commercial officer, said: “We’re delighted to announce rate reductions of up to 0.35% across our residential product range.

“With further reductions on some of our buy to let products, as well as the recent reintroduction of our popular fee-saver products, we hope these positive changes and additions to our products help advisers and their clients find the most suitable route towards achieving their property goals.”

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