News
Paragon Bank adds £750 cashback and 3% fee to five-year fixes
Paragon Bank has introduced a £750 cashback incentive to all of its five-year fixed buy-to-let (BTL) mortgages.
The lender has also launched 3% fee options, meaning Paragon Bank’s five-year fixes have 3%, 5% and no-fee options up to 75% loan to value (LTV).
The nil-fee products were launched at the start of this month. The lender said these changes broadened options for landlords.
The changes apply to products for purchase and remortgage.
Rates for the 3% fee product start at 5.14% for properties with Energy Performance Certificate (EPC) ratings of A-C, up to 5.39% for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).
Interest coverage ratios (ICRs) are calculated at the product rate.
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The mortgages are available to individual and limited company borrowers in England, Scotland and Wales and include a free valuation.
James Harrison (pictured), mortgages product manager at Paragon Bank, said: “After listening to brokers, we’ve introduced £750 cashback to our purchase and remortgage five-year fixes, helping to offset application or legal fees.
“We’re also responding to changes in the market – as interest rates have started to reduce, products with lower fees have become more popular. Therefore, we’ve added a 3% product fee option to complement our nil-fee and 5% fee five-year fixed-rate range.”