Rates for two-year fixed rates starting from 4.85 per cent for single self-contained properties with EPC ratings between A and C and 4.9 per cent for where the EPC rating is D or E.
Interest coverage ratios (ICR) are calculated at 6.85 per cent and 6.9 per cent respectively.
The lender is also offering a two-year fixed rate buy-to-let mortgage for houses in multiple occupation (HMO) and multi-unit blocks (MUB). The interest is charged at 5.1 per cent, the ICR is 7.1 per cent.
The products come with a five per cent fee and are available to portfolio landlords up to 70 per cent loan to value (LTV).
Individual landlords and limited company landlords in England, Scotland and Wales are eligible for the products.
Louisa Sedgwick (pictured), commercial director at Paragon Bank, said: “Our most recent rate reduction sees us quickly respond to the current stability of the swaps market and take 45bps off our core two-year, buy-to-let fixed rate, offering our customers some very competitively priced products.
“These should appeal to borrowers who would like the certainty of a fixed rate product, but over a shorter two-year period.”
She added: “While five-year fixes remain popular, we have seen demand grow for two-year options. This could be driven by more landlords choosing to reassess the market in two years’ time, with the recent easing of inflation increasing confidence that we are nearing the current cycle of base rate rises and the expectation that this will play through to mortgage rates during the period.”
