The five-year fixed rate is priced at 4.69 per cent up to 70 per cent loan to value (LTV) and is available for single self-contained properties with EPC ratings between A and C.
For properties with an EPC rating of D or E the rate is 4.74 per cent for houses in multiple occupation (HMO) and multi-unit blocks (MUB) pricing goes up to 4.94 per cent.
No ERCs – ‘an industry first’
The lender has also brought out a zero ERC product, where there are no ERCs in the first year of the product and a flat three per cent fee for the remainder of the term.
The product comes with a seven per cent fee and the interest coverage ratio (ICR) is calculated at 5.5 per cent.
Paragon has also added a nil product fee five-year option beginning at 6.3 per cent for single self-contained properties at 65 per cent LTV with the ICR set at pay rate.
Louisa Sedgwick (pictured), commercial director at Paragon Bank, said: “We’re excited to launch our new five-year fixes, especially because we know that the new 4.69 per cent rate is extremely competitive and the cheapest five year product that we’ve launched since August last year.
“We’re also pleased to bring an industry first through zero ERCs in the first year of the product to add an element of flexibility to the certainty of fixing at a market-leading rate.”
She added: “Brokers have told us that they’re trying different approaches to find solutions for their clients and that one of the best ways we can support landlords in the current dynamic market is by offering choice, including a range of rate and fee options, and we feel that our latest products certainly do that.”
