Paragon Bank has added a selection of limited-edition five-year fixed-rate products to its range of landlord loans, with rates starting at 5.75%
The lender says the offers, which include lower rates for properties with energy performance certificate ratings between A to C, are available at up to 75% loan-to-value.
It adds for landlords borrowing up to £4m for the purchase or remortgage of single self-contained units, rates start at 5.75%, with the interest cover ratio set at pay rate. These products carry a 5% product fee and include a free valuation.
The bank also offers mortgages for single self-contained properties with a flat fee of £2,995, with rates starting at 6.45%. These flat fee mortgages are available up to a maximum loan size of £1m, have no application fee and include a free valuation.
The offer includes limited-edition five-year fixed-rate loans for landlords purchasing or remortgaging houses in multiple occupation, or multi-unit blocks.
Rates for these properties start at 6.00% with a 5% product fee, with the interest cover ratio calculated at 6% and a maximum loan size of £4m as well as a free valuation.
Houses in multiple occupation and multi-unit block deals can also be bought, using a £2,995 flat fee. Rates are priced at 6.70%, with an interest cover ratio calculation rate to match, and the maximum loan set at £1m.
This product includes a free valuation and carries no application fees.
These mortgages are open to portfolio landlords — those with four or more buy-to-let mortgaged properties — in England, Scotland and Wales, operating through limited companies, or as individuals.
These limited-edition offers follow inflation yesterday falling to a sixteen-month low of 7.9% in the year to June, according to the Office for National Statistics, from 8.7% in the year to May.
Financial markets are betting that this ease in the rise of the cost of living will reduce pressure on the Bank of England to aggressively lift the base rate, currently at 5%.
Investors forecast a peak base rate of 5.75%, compared to predictions earlier in the week of the rate hitting 6.5% next March.
Paragon Bank commercial director Louisa Sedgwick says: “With swap rates falling recently, helped by better-than-expected inflation figures, we were keen to pass on these lower rates to customers as quickly as possible. “
“These products are extremely competitive in the current market and being limited edition mean they may not be around for long — when they’re gone, they’re gone.”
