Three of the deals are capped at 60%, while a further three are available up to the bank’s maximum LTV of 75%. Both ranges come with a 5% product fee.
Investors with a 40% deposit purchasing a property with an Energy Performance Certificate (EPC) rating of A to C can access rates starting from 4.8%, rising by five basis points for ratings of D or E. House in multiple occupation (HMO) and multi-unit block (MUB) deals are priced from 5.05%.
For the 75% LTV options, rates start at 4.95% for single self-contained properties with an EPC rating of A to C, also increasing by five basis points for properties with EPC ratings of D or E. For HMOs and MUBs, rates start at 5.2%.
All products are available to landlords operating in both personal name and limited company structures and are offered on a limited-edition basis.
James Harrison, product manager at Paragon Bank, said: “We’ve seen a trend in landlords choosing higher-fee products to secure a lower payrate. By cutting rates at 75% LTV and offering even better value at 60% LTV, we are aiming to ease affordability constraints for landlords and provide more flexibility in how borrowing costs are structured.
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“This recent shift towards higher fee products has been influenced by rising mortgage rates across the industry, driven in part by the ongoing conflict in the Middle East and its impact on funding conditions for lenders. We remain focused on responding to these pressures with competitive pricing and a range of options that support landlords’ investment plans.”
TMW makes mortgage rate cuts
The Mortgage Works (TMW) is set to cut rates for existing customers by up to 0.2 percentage points tomorrow across its BTL and HMO ranges.
Selected two- and five-year fixed rate products up to 75% LTV for new borrowers will be reduced by up to 0.1% across the limited company BTL range.
Highlights from the existing customer switcher rate cuts include:
• Two-year fixed rate BTL mortgage at 3.59% (reduced by 0.2%) with a 3% fee, available up to 65% LTV.
• Five-year fixed rate BTL mortgage at 4.92% (reduced by 0.07%) with no fee, available up to 65% LTV.
For new customers, rate cuts include a two-year fixed rate applicable for purchase, remortgage and further advance limited company BTL mortgage borrowers at 4.49%, reduced by 0.1% and with a 3% fee, available up to 75% LTV with free valuation.
