Both new products are five-year fixes at 75 per cent loan-to-value (LTV) with £500 cashback, a free mortgage valuation and are available to landlords remortgaging in their personal names or through their limited company.
The first is suited to portfolio landlords looking to remortgage on single self-contained properties and has a rate of 3.45 per cent with a product fee of 1.50 per cent.
The second is available on houses in multiple occupation (HMOs) and multi-unit blocks (MUB) at a rate of 3.65 per cent with a product fee is set at two per cent.
They include early redemption charges (ERC) of five per cent during years one and two, four per cent for years three and four and three per cent for year five.
Paragon noted that it expected the proportion of buy-to-let remortgage business to grow during 2021 as its research revealed mortgage brokers will switch their attention to the remortgage of five-year deals after the stamp duty holiday ends at the end of March.
The number of five-year fixed rate buy-to-let mortgages increased significantly in the run-up to the introduction of the buy-to-let stamp duty surcharge in April 2016.
Industry data shows that the number of five-year fixed buy-to-let mortgages completed in the six months to the end of March 2016 was 121 per cent higher than the same period in 2015.
As a result, brokers are now planning to focus on this wave of maturing deals.
Moray Hulme, director for mortgage sales said: “The introduction of a three per cent buy-to-let surcharge in April 2016 led to a marked increase in landlords choosing five-year fixed rate mortgages.
“Research we have carried out confirmed our expectation that a significant number of brokers will be looking to support landlords who are in the process of remortgaging now that those five-year mortgages are reaching maturity.
“The launch of our two remortgage products is a timely and useful addition to our range for brokers who are targeting this business.”