Paragon has expanded its range of BTL mortgages for portfolio landlords by launching six five-year fixed rate products with 2.5% and £1,999 fee options up to 75% loan to value (LTV).
The 2.5% fee five-year fixed rate deal has rates starting at 5.35% for single self-contained homes with an EPC from A to C. Rates increase to 5.4% for properties with EPC ratings of D or E.
A deal, priced at 5.6%, for portfolio landlords purchasing or remortgaging houses of multiple occupancy (HMOs) or multi-unit blocks (MUBs) has also been added to the range.
Alternatively, the £1,999 fee option is priced at 5.7% for single self-contained homes with EPC ratings from A to C, increasing by five basis points to 5.75% for properties with an EPC rating of D or E, and 5.9% for HMOs and MUBs. A maximum loan size of £250,000 is applied to these products.
All products are available to landlords with four or more BTL mortgaged properties, applying in a personal name or using limited company structures in England, Scotland and Wales. Income coverage ratios are calculated in line with initial rates, and products are subject to an application fee of £299.
Louisa Sedgwick (pictured), commercial director at Paragon Bank, said: “Equally important as all of the number crunching is listening to brokers who have told us that low-fee options would offer a solution in scenarios where purchase prices are lower or capital doesn’t appreciate as quickly. This is where these products fit in.”
Earlier this month, the bank became a signatory of the Mortgage Industry Mental Health Charter (MIMHC).
TMW reduces rates
The Mortgage Works, meanwhile, has reduced rates on selected BTL and limited company deals by up to 0.4 percentage points.
The new rates include a limited company two-year fixed rate at 4.99% with a 3% fee, available up to 75% LTV.
On the individual BTL side of the business, selected rate cuts include a five-year fixed rate at 3.99% with a 3% fee available up to 55% LTV, and a fee-free five-year fixed rate at 4.59% available up to 65% LTV.
Earlier this month, the company amended its affordability criteria.
