Rates begin at 2.95 per cent for borrowers looking to switch to a new product, while further advance fixed rates start from 3.4 per cent.
Individual landlords, as well as those operating as limited companies or limited liability partnerships, can access the products for portfolio landlords. Mortgages can be gained for single self-contained properties (SSC), houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).
The non-portfolio range is available to buy-to-let borrowers for SSC properties.
Mortgages are fixed for either two or five years and some offer zero product and application fees alongside free valuations.
All products have an interest coverage ratio (ICR), which starts at four per cent. They are also subject to early repayment charges which decrease incrementally from five per cent in years one and two, to four per cent in years three and four and down to three per cent in year five.
Moray Hulme, director for mortgage sales at Paragon, said: “The Prudential Regulatory Authority’s introduction of new underwriting standards in 2017 led to a substantial increase in the number of five-year fixed rate mortgages written between December 2016 and January 2018. We’ve launched a new range of keenly priced switch products to cater to the wave of landlords who will have loans reaching maturity in 2022.
“In addition, we know that there is a growing number of landlords who are looking to make their properties more energy efficient or are thinking about expanding their portfolios, perhaps taking on somewhere that requires some work to bring up to a good standard. Our further advance products are perfect in these types of scenarios, so we’re pleased to be able to support investment in improving the quality and quantity of private rented sector stock.”
