Paragon Bank unveils market-leading five-year fixed rate BTL mortgage

Paragon Bank has unveiled a market-leading five-year fixed rate buy-to-let mortgage with a reduced reference rate.

The mortgage is available at 70% loan-to-value (LTV) with an initial rate priced at 5.69%. The product is subject to a 2.00% product fee and features a free mortgage valuation.

Paragon is offering the five-year fix with an ICR calculation rate that has been reduced from 7.00% to 5.75%.

The product is available in England, Wales and Scotland and is suitable for portfolio landlords – that is a landlord with four or more mortgaged properties – purchasing or remortgaging houses in multiple occupation (HMO), multi-unit blocks (MUB) and single self-contained (SSC) properties.

‘Pleased to be able to offer a five-year fixed rate product’

Moray Hulme, Paragon’s director for mortgage sales, said: “With a level of stability returning to the market, we’re pleased to be able to offer a five-year fixed rate product that features a market-leading initial rate.

“We feel this will really appeal to those landlords who seek the certainty provided by fixed rates and should sit well alongside our discounted variable products, giving investors some choice.”

He added: “Listening to brokers, we know that landlords have still been keen to stay active in the market, particularly as tenant demand remains strong, so to help facilitate this we have reduced the rate at which we calculate ICRs from 7.00% to 5.75%.”

ERCs of 5% are payable in years one and two, 4% during years three and four and 3% in year five.

APRC is 6.20% and reversion rate is 5.85% – Paragon SVR less 1.25%.