The two-year fixed product was launched earlier this month and is available on the lender’s tier 48 criteria, which is open to those who have not had credit blips in up to 48 months.
The fee has also been amended from a three per cent fee to a fixed fee of £4,995. The lender said this change would help larger loan borrowers. Loan sizes between £50,000 and £1m are available and the lender will accept first-time landlords as well as limited company borrowers.
The mortgage is available up to 75 per cent loan to value (LTV).
The product is included in Vida’s Service Pledge initiative, which allows brokers to request a refund of the £180 application admin fee if they feel the service was less than excellent.
Paragon Bank launches limited edition discounted SVR
Paragon Bank has launched a limited edition two-year product with a discount off the lender’s standard variable rate (SVR).
The product is available up to 75 per cent LTV and has a track-to-fix feature, meaning borrowers can switch to a fixed rate without an early repayment charge (ERC).
It is currently priced at 4.73 per cent, which is 4.12 per cent lower than Paragon’s SVR.
It is available for single self-contained properties, houses in multiple occupation (HMOs) and multi-unit blocks (MUBs). Portfolio landlords, individual landlords and limited company borrowers are eligible for the product.
It has a three per cent fee and offers a free valuation.
Richard Rowntree, managing director for mortgages at Paragon Bank, said: “Brokers have told us that a growing number of their clients want to see what happens to rates over the next year or two and we know that many borrowers like the certainty of fixed rate mortgages.
“With no ERCs for landlords who switch to one of our fixes, track to fix provides a balance of flexibility and certainty.”
