Paragon has released a two-year fixed rate at 70 per cent loan to value (LTV) at 3.94 per cent for a property with an Energy Performance Certificate (EPC) rating between A and C single self-contained (SSC) properties, and 3.99 per cent for SSC properties with EPC rating between D and E and 4.19 per cent for houses in multiple occupation (HMO) and multi-unit blocks (MUBs).
This is the lowest two-year fixed rate for 18 months and the deals come with a five per cent fee. It is available for portfolio landlords.
Paragon has reduced two-year fixed rates at 75 per cent LTV for portfolio landlords with a three per cent fee by 0.35 per cent, beginning from 4.85 per cent for green properties, 4.9 per cent for standard properties and 5.1 per cent for HMO and MUBs.
For non-portfolio landlords, the green property product and standard products are available.
Interest coverage ratios (ICRRs) are calculated at two percentage points above initial rates, and products are available to landlords applying through limited company structures or in personal name in England, Scotland and Wales.
Louisa Sedgwick, commercial director at Paragon Bank, said: “Although there is still work to do to stabilise the economy, things do seem to be heading in the right direction, and the general feeling is that rates are coming down. This means that we’re seeing landlords seek the stability of a fixed rate, but over the shorter two-year term, so they can reassess the market in a couple of years’ time.
“With it being Valentine’s Day, we wanted to show some love to our landlord customers, so we’re offering our lowest rate on two-year fixes for new customers in over 18 months and have taken 35bps off our three per cent fee two-year product too.”
In August, the company launched a range of limited-edition five-year fixed mortgages.
Coventry BS to withdraw deals to reprice
Coventry Building Society is removing select deals on 15 February to reprice them upwards.
In a note to brokers, the lender said that the closure would come into effect from 8pm on 15 February, and to secure a product, a broker would need to submit an application in full before that time.
On the residential side, for new borrowers, the lender is increasing all fixed rates at 65 to 85 per cent LTV excluding offset, along with all two- and three-year fixed purchase rates at 90 per cent LTV.
All five-year fixed purchase rates between 90 and 95 per cent LTV with no fee are going up, as well as all three- and five-year fixed remortgage rates at 90 per cent LTV.
All two-year fixed remortgage rates at 90 per cent LTV with no fee will rise, along with all two-year fixed remortgage offset, interest-only and offset interest-only rates with a fee.
Within its existing borrowers range, all fixed rates between 65 and 85 per cent LTV barring offset will go up, along with all two-year fixed rates form 90 to 95 per cent LTV with no and five-year fixed rates with no fee at 95 per cent LTV.
On the buy-to-let (BTL) and portfolio BTL side, new borrower rates will increase, which includes all two-year fixed remortgage rates, all two-year fixed purchase rates with no fee and all five-year fixed rates.
