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Paragon slashes rates by up to 0.4 per cent

  • 24/11/2023
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Paragon slashes rates by up to 0.4 per cent
Specialist buy-to-let lender Paragon has reduced rates by up to 0.4 per cent on 13 fixed rate buy-to-let mortgages, and brought out a flat fee product.

The lender has cut eight two-year fixe rates, with pricing beginning at 4.19 per cent for landlords buying or remortgaging single self-contained (SSC) properties with an EPC rating between A and C.

For properties with an EPC rating of D or E, the rate increases by five basis points. They are available up to 70 per cent loan to value (LTV).

The firm has lowered five of its five-year fixed rate mortgages by up to 0.2 per cent. Pricing starts from 4.69 per cent for landlords purchasing or remortgage SSCs with an EPC rating from A to C.

For EPC D and E properties, the rate is 4.74 per cent and for houses in multiple occupation (HMO) or multi-unit blocks (MUB) the price is 4.94 per cent.

The limited edition products are available up to 70 per cent LTV and come with a seven per cent products and ICR is calculated at 5.5 per cent.

The interest coverage ratio (ICR) is calculated at 6.19 per cent and 6.24 per cent respectively and the product fee is five per cent.

Additionally, the lender has released a new £2,995 fee product with rates of 5.94 pe cent for the EPC A-C ‘green’ mortgage, 5.99 per cent standard and 6.19 pe cent for HMO and MUB.

ICRs are calculated in line with initial rates and the product is available at up to 75 per cent LTV for portfolio landlords, defined as four or more buy-to-let mortgaged properties.

All products are available to landlords applying via limited company structures or in personal name in England, Scotland and Wales and come with a free valuation and £299 application fee.


Paragon: ‘Landlords more active in the market’

Louisa Sedgwick, commercial director at Paragon Bank, said: “We recently reduced rates on some of our core five-year fixes, a move that has been well received by the market.

“We are certainly seeing landlords becoming increasingly more active in the market, for both purchase and remortgage, there is undoubtedly an incredibly strong demand for good quality rented homes.”

She added: “We’re constantly monitoring the market and with swaps rates moving in the right direction, reflecting an improving economic outlook, we’re able to again improve our product range.

“With products for both portfolio and non-portfolio landlords and flat and percentage fee options, we’re aiming to support more landlords with more choice, to invest in the private rented sector.”

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