Paragon launches base rate tracker BTL deals as Aldermore cuts rates

Paragon has rolled out a new range of bank base rate tracker buy to let mortgages, pitching them as a more flexible option for landlords navigating a shifting interest rate landscape.

The products track the Bank of England base rate and crucially come with no early repayment charges.

That means landlords can move away at any point without penalty, a feature the lender says is a safeguard against further rate volatility.

Paragon’s BTL product manager, James Harrison, said: “With a range of fee options and no ERCs at any point throughout the five-year term, our new bank base rate tracker mortgages give landlords certainty, with the flexibility to finance their investments with the products that best meet their needs.”

Six mortgages with five-year terms

The six mortgages in the range start at base rate plus 1.60% and are offered on a five-year term at up to 75% loan to value.

Borrowers can choose between three fee options of 0.75%, 1.00% or 1.5%, while Interest Coverage Ratios (ICR) are assessed at the initial rate plus 2%.

The range covers both purchases and remortgages, split between single self-contained properties and more complex assets.

Three products are available for SSCs, with a further three aimed at houses in multiple occupation and multi-unit blocks.

There is no application fee on SSC borrowing, although landlords financing HMOs or MUBs will pay £299.

Fixed BTL rates trimmed

Alongside the tracker launch, Paragon has also trimmed pricing on a selection of two-year fixed rate buy to let mortgages for HMOs and MUBs by 15bps.

Rates now start from 3.39%, with options available at 75% and 65% LTV.

The higher LTV products carry a £299 application fee, while the 65% range is subject to a £150 charge.

Fee choices of nil, 3.00% and 5.00% are available.

Aldermore’s landlord deals

Meanwhile, Aldermore is reshaping its buy to let offering by moving a number of limited edition landlord products into its core range.

It is also cutting rates for existing customers looking to switch.

The lender confirmed that selected limited edition deals for new BTL borrowers will be withdrawn and replaced with equivalent core products.

As a result, Aldermore has reduced core range two-year fixed rates by up to 0.40% and five year fixes by as much as 0.45%, including products at 80% LTV and lending for multi-unit freehold and HMO properties held across multiple assets.

Giving landlords mortgage options

Two five-year fixed products with a 1.50% rate and a £1,999 fee will remain available as limited editions.

For individual and company landlords with single residential investment properties, Aldermore has cut two-year fixed rates by up to 0.10%, with pricing now starting from 5.89%.

Five-year fixed rates have been reduced by up to 0.15%, with rates from 5.64%.

Jon Cooper, Aldermore’s director of mortgages, said: “We aim to offer solutions that genuinely support a wide range of customer circumstances, giving landlords more of the options they need.”

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

Share This Article