Paragon cuts rates and adds extra-large loan products for portfolio landlords

The lender cut rates on two and five-year fixed products for purchasing or remortgaging SSC properties, for landlords who manage their portfolio business in their own name or through a limited company.

The SSC mortgages are offered at 70 per cent loan to value (LTV), with rates on the two-year from 2.95 per cent and over five years at 3.34 per cent. 

At 75 per cent LTV, the rates are 3.2 per cent for the two-year and for the five-year, they range from 3.30 per cent to 3.65 per cent.

The mortgages come with free valuation and £750 cash back.

Extra-large loans

The new extra-large loan products come with a £10,000 product fee.

There’s a 70 per cent LTV on loans of up to £1m, and a 65 per cent LTV product for loans up to £2m. The products are offered at initial rates of 3.25 per cent fixed for five years.

They are available for SSC, homes in multiple occupancy and multi-unit blocks. They come with free valuation and £750 cash back, and they are subject to a £299 application fee.

On all the new products, the two-year loans have early redemption charges (ERCs) of two per cent, and the five-year products have ERCs of five per cent in the first two years, then four per cent in years three and four, and back to five per cent in year five.

Moray Hulme, director for mortgage sales at Paragon (pictured), said: “We’re excited to announce reductions across our core product offering for purchasing and remortgaging SSCs, which we know are key investments for many portfolio landlords.

“After engaging with brokers, we know that a flat fee is attractive on the particularly high-value purchases and remortgages.

“We’re well-placed to take a different approach to supporting investors in this section of the market. The product fee may seem high at first glance, but it actually presents fantastic value for portfolio landlords who are financing properties up to a value of £2m.”