Paragon Bank has launched a range of limited edition five-year fixes for portfolio landlords, with rates starting at 6.45% and fixed fees from £995.
The lender says the rates on these loans are available at up to 75% loan-to-value, are priced at 6.45% with a £2,995 fee and maximum loan size of £2m, or, 6.54% with a £995 fee and a £500,000 maximum loan.
It adds these deals are suitable for portfolio landlords financing single self-contained properties that fall into energy performance certificate bands A to C, while rates for homes with lower energy efficiency ratings are priced 5 basis points higher.
The business also offers similar mortgages for houses in multiple occupation, with the £2995 fee option priced at 6.70% and rates on the £995 fee product set at 6.79%.
Interest coverage ratios are calculated in line with initial rates.
All products include free valuations and are available to landlords operating as individuals or through limited companies in England, Scotland and Wales.
Paragon Bank commercial director Louisa Sedgwick says: “We’re pleased to bring some new limited edition products to the market to offer landlords additional choice.
“We know that brokers are looking at different ways to make deals work for their clients, trying to find the best balance between rates, fees and loan amounts, all within affordability constraints.
“For some, such as those borrowing higher amounts up to our new £2m limit, the £2,995 fee mortgage can be a good value option. Likewise, the £995 fee product could be really well suited to landlords who want to borrow up to £500,000.”
