The limited edition products are available for portfolio landlords who are purchasing or remortgaging Single Self-Contained (SSC) properties. They are fixed for five years, with rates starting at 2.67 per cent at 50 per cent loan to value (LTV) and 2.77 per cent at 60 per cent.
The rate is 10 basis points more for homes rated EPC D and E.
For both portfolio and non-portfolio landlords who are looking to switch, there are four products at 75 per cent LTV.
This will be available on houses in multiple occupation (HMO), multi-unit blocks (MUB) and SSC. The initial rate is three per cent when fixed over two years, rising to 3.08 per cent when borrowed over a five-year term.
Non-portfolio landlords with SSC can choose between two and five-year fixed rate products, with rates set at three per cent and 3.08 per cent respectively.
The limited edition products have no application fees and are offered with free valuations and £750 cashback. They include an interest coverage ratio (ICR) of four per cent.
Switch products have transfer fees. ICR is set at four per cent on five-year fixes and 5.50 per cent on two-year fixes.
Moray Hulme, director for mortgage sales at Paragon, said: “Since the end of lockdown, we’ve seen an increasing population of landlords who do not wish to leverage their properties as much as they may have done previously. As a responsible lender, we have launched some 50 per cent and 60 per cent LTV products to cater for this market and reward this prudent approach.
“In addition, we made a commitment to keep our switch products in line with our core range and so this is an extension of that promise, matching the remortgage-only products we launched last week.”
Loughborough cuts 80 per cent LTV rate
Loughborough Building Society has reduced the rate of its 80 per cent LTV five-year fixed BTL mortgage.
This now has a rate of 3.25 per cent, down from 3.49 per cent.
The product comes with a free valuation and no application or completion fees.
It is available to business BTL, consumer BTL and let-to-buy purchase or remortgage applications in England and Wales. Applicants must have a minimum income of £25,000 and aged 25 or over.
This product is not available to portfolio landlords and the mutual will not lend on flats, apartments or maisonettes. Early repayment charges are applicable throughout the product term.
Ashley Pearson (pictured), national business development manager, said: “I’m happy with this reduction in rate, it shows commitment to landlords and at 80 per cent LTV puts us in a good place in the market.”
