News
Paragon Bank adds nil-fee BTL and discounted SVR deals
For the first time in two years, Paragon Bank has released a two-year fixed buy-to-let product with no fee.
This has a rate of 6.1% and is available for purchase or remortgage against single self-contained (SSC) properties with an energy performance certificate (EPC) rating of A to C.
For properties with an EPC rating of D or E, the rate is 6.15%. Meanwhile, for houses in multiple occupation (HMO) and multi-unit blocks (MUBs), the product is priced at 6.35%.
Paragon Bank has also launched a two-year discounted variable rate product, which is 3.16% lower than its standard variable rate (SVR) for properties rated EPC A to C. The lender’s SVR is currently 9.6%.
Across the standard range, this product is 3.11% lower than the SVR.
This product has a 1.25% fee.
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Rates for the discounted variable rate product start at 6.19% for the green option, 6.24% on the standard product and 6.44% for HMOs and MUBs.
This sits alongside Paragon Bank’s existing 2.5% fee discounted variable rate product.
Borrowers on Paragon Bank’s discounted and standard SVR products can also track to fix at any time during the product term without incurring an early repayment charge.
The products are available up to 75% loan to value (LTV) while the interest coverage ratio is calculated at the initial product rate plus two percentage points.
The range is open to individual and limited company applicants in England, Scotland and Wales. It has a free mortgage valuation and a £299 application fee.
James Harrison (pictured), mortgage product manager at Paragon Bank, said: “Landlords keep a keen eye on the economy and we know there is an anticipation that rates will continue on their current downward trajectory.
“This makes two-year products more appealing so we’re providing more choice across the term, launching a nil-fee fixed rate option and a discounted variable rate. The latter has a lower fee than our existing 2.5% fee product and is available with track to fix. This makes it a great choice for customers who want flexibility, with the option to choose a fixed rate product within the next two years without paying an early repayment charge.”
Last week, Paragon Bank released data which suggested landlords were considering more complex property types and getting younger in age.