The product launch is in response to broker feedback and will give more product choice to landlords, the lender said.
The two-year products, which can be used for purchase or remortgage, are available up to 75% loan to value (LTV), with pricing starting at 5.1% for single self-contained properties (SSCs), the base rate plus 1.35%.
Borrowers looking to finance houses in multiple occupation (HMOs) or multi-unit blocks (MUBs) can choose products with rates from 5.45%, which is the base rate plus 1.7%.
There are three fee options available at 0.75%, 1% and 1.5%, with interest coverage ratios (ICRs) set at the product’s initial rate plus two percentage points.
There are no early repayment charges (ERCs) and they have fee valuations and no application fees for SSC property mortgages. A £299 application fee applies to HMO and MUB applications.
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Landlords can also use any of the BBR tracker deals as part of a multi-property application for 4-99 properties. This will cut legal costs, as only one legal advice certificate is needed for each application, and there are no HMO and MUB application fees.
James Harrison, buy-to-let (BTL) product manager at Paragon Bank, said: “Adding two-year products to our range of bank base rate tracker mortgages further increases choice for landlords, with a range of fee options and no ERCs offering customers a balance of flexibility and certainty.
“Following feedback from brokers, the addition to the range follows the launch of six five-year bank base rate tracker products in December last year, shortly after bank rate was cut from 4% to 3.75%. The latest additions feature the same benefits as the five-year versions – free valuations and no application fees on SSCs – and with further bank rate cuts forecast for this year, these products will be particularly appealing to landlords.”
Louisa Sedgwick, managing director of mortgages at Paragon Bank, added: “The five-year BBR tracker products launched at the end of last year have proven popular with landlords. The feedback we get from our intermediary partners is invaluable and their market insight helps to inform our products and proposition. The addition of the two-year options to our BBR product range demonstrates how we don’t just listen to broker feedback, we act upon it.”
Family BS widens HMO criteria and cuts rates
Family Building Society has enhanced its HMO criteria and lowered rates in its owner-occupier range.
Two-year owner-occupier repayment deals have been reduced by 10 basis points (bps), alongside a 5bps reduction to the three- and five-year fixed rates.
Two-year fixed rate interest-only rates have also been cut by 10bps and the discounted two- and three-year owner-occupier interest-only range will fall by 15 bps.
On the criteria side, the mutual will now accept properties with six bedrooms on HMO deals.
Darren Deacon, head of intermediary sales at Family Building Society, said: “These rate reductions will be welcomed by intermediaries and borrowers alike in what remains quite an uncertain and competitive market. For landlords looking for an alternative lender with a flexible and case-by-case approach, our enhanced HMO criteria will also be welcome news.”
