Paragon debuts limited edition 2- and 5-year BTL products – Mortgage Strategy
Paragon Bank has added four limited edition fixed-rate loans to its range of buy-to-let mortgages, comprising two two-year and two five-year products, all available at up to 75% loan to value.
The challenger bank says rates on the two-year products start at 4.80% for purchasing or remortgaging homes with energy performance certificate ratings of A to C. This rises to 4.85% on properties with an energy performance certificate rating at D or E.
Interest coverage ratio calculation rates are 6.80% and 6.85%, respectively.
Five-year product rates start at 5.00% on properties with an energy performance certificate rated at A to C, rising to 5.05% for properties with lower energy efficiency scores of D and E.
The Interest coverage ratio is 5.50% on both five-year products.
The lender adds that all products come with free valuations and £350 cashback, along with a product fee of 3.00%. The loans are available to portfolio landlords with four or more mortgaged BTL properties in England, Scotland and Wales.
The four products cover the purchase or remortgage of houses in multiple occupation, multi-unit blocks and single self-contained properties.
The move follows the Bank of England raising the base rate to 4% from 3.5% last Thursday, the 10th hike in a row, as it attempts to calm inflation at 10.5%, which is more than five times above the central bank’s 2% target.
Paragon Bank director for mortgage sales Moray Hulme says: “Since we refreshed our product range at the start of the year, we’ve seen a positive response from the market.
“This, along with conversations with brokers and landlords, reinforces our belief that alongside plenty of remortgage business, professional landlords want to continue investing in response to strong demand for rented homes despite a challenging economic environment.
“With the Bank of England increasing the base rate last week, we are confident that these products will provide additional options for landlords seeking some certainty.”