Paragon increases procuration fees in product revamp

The move comes alongside a revamp for its switch and further advance product range for both portfolio and non-portfolio landlords.

For portfolio landlords looking to finance single self-contained units, the new range includes a two-year fixed rate at 3.55 per cent with a 0.5 per cent fee, as well as a five-year fix at 3.8 per cent with no fee. 

Both deals are available at 75 per cent LTV.

For multi-unit blocks and houses in multiple occupation (HMO), at 75 per cent LTV there is now a two-year fix at 3.65 per cent with a 0.5 per cent fee, and a five-year fee-free fixed rate at 3.9 per cent.

For non-portfolios, the switch range now includes two- and five-year fixed rates starting from 2.85 per cent on loans of up to 75 per cent with a one per cent product fee, and at 3.5 per cent on loans of up to 80 per cent with no product fee.

While proc fees have been increased on the switch range, they are unchanged at 0.5 per cent on further advance deals.

John Heron (pictured), managing director ‒ mortgages at Paragon, said the “significant” refresh of its product line was designed to offer landlords greater choice and flexibility.

He continued: “We also understand the valuable contribution our intermediary partners make in ensuring the right products are delivered to the right customers. Where a broker recommends a Paragon switch product and is proactively engaged in the process, we believe that it is appropriate that the intermediary is rewarded, which is why we’ve increased proc fees to 0.30 per cent.”