News
Paragon cuts BTL rates and adds six deals
Paragon has reduced rates across its core buy-to-let (BTL) offering and released six products in its range.
Rates have been lowered by up to 0.15% across 10 deals.
Paragon has also launched a trio of five-year fixed mortgages with 5% fees, with rates starting at 4.6% for the purchase or remortgage of properties with Energy Performance Certificate (EPC) ratings of A to C.
Pricing rises to 4.65% across Paragon’s standard products for properties rated E or D. For houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), rates begin from 4.8%.
Three fee-free corresponding options have been released, with rates starting at 5.65% for the EPC A to C product, 5.7% on the standard option and 5.9% for HMOs and MUBs.
The products are available up to 65% loan to value (LTV) and have a £750 application fee, as well as £750 cashback on completion.
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The interest coverage ratio (ICR) is calculated at 5% on the products with a 5% fee, which Paragon said was in line with the initial rates of the fee-free options.
Louisa Sedgwick (pictured), mortgages commercial director at Paragon Bank, said: “We’re reducing rates across our core range, as well as introducing some flexible new five-year options to offer landlords more choice. In addition to this rate cut, on products where a £750 application fee is charged, rates are lower compared to our core range. Customers will receive £750 cashback on completion, offering competitive pricing for landlords who are confident that their application will go through.
“To get a better idea of whether the property will stack up, we always encourage brokers to talk through cases with us and take advantage of our ‘pre-valuation assessment’, where one of our qualified surveyors looks at the property to assess whether it’s fit for us to lend on. As well as helping the landlord feel more confident that we will be happy to proceed, it also helps brokers know that by making a £750 upfront fee as a commitment, their client is serious about completing their mortgage application.”
This week, Paragon revealed in an interview with this publication that it was planning to launch an origination system in Q3 of this year to improve the broker experience.