Paragon Bank has made changes to its buy-to-let offering with new products in its range of five year fixed rates.
The new products start at 4.89% on the specialist lender’s 5% fee option, available for purchase or remortgage of single self-contained (SSC) properties categorised as ‘green’ due to energy performance certification (EPC) of A-C.
This increases to 4.94% for homes with lower energy efficiency ratings and 5.14% for Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUB).
Nil fee options, with £750 cashback are also available on selected mortgages. These are priced from 5.94% for the ‘green’ SSC product, rising by 5bps for standard energy efficiency and to 6.19% for HMO and MUB.
All of the five-year fixed rate products included in the launch 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.
Paragon Bank commercial director Louisa Sedgwick says: “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. 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.”
Earlier this month, Paragon cut rates on its five-year fixed BTL range by 70 bps, starting at 4.50%.
