Paragon Bank has announced a significant reduction in its two-year fixed-rate buy-to-let (BTL) mortgage offerings, cutting rates by 30 basis points (bps). With rates starting at an attractive 3.34%, this marks the lowest level seen since May 2022, making it a compelling opportunity for landlords and property investors.
Lower Rates for Buy-to-Let Mortgages
The newly reduced 3.34% rate is available on loans up to 70% loan-to-value (LTV) for Single Self-Contained (SSC) properties that hold an Energy Performance Certificate (EPC) rating of A-C. These mortgage products come with Interest Coverage Ratios (ICRs) of 5.50% and a 5% fee, making them a competitive option for investors focused on energy-efficient properties.
For landlords looking for higher LTV options, Paragon is also offering two-year fixed-rate BTL mortgages at up to 75% LTV. The rates for Paragon’s green mortgage begin at 4.34%, while properties with lower EPC ratings (D or E) see a minor increase of 5bps. A no-fee option is available, starting at 5.84%, with ICRs set at two percentage points above the initial rates.
Options for HMO and MUB Properties
Landlords investing in Houses in Multiple Occupation (HMO) or Multi-Unit Blocks (MUBs) can also take advantage of Paragon’s new rates. The 5% fee product starts at 3.59%, while the 3% fee option begins at 4.59%. A nil fee mortgage is also available at 6.09%, providing flexibility based on investment preferences.
Exclusive Benefits for Landlords
These mortgage products come with a free valuation and a £299 application fee. Suitable for landlords purchasing or remortgaging properties as individuals or through limited company structures, they are available across England, Scotland, and Wales.
Paragon Bank’s Take on the Market Shift
James Harrison, Mortgage Product Manager at Paragon Bank, highlighted the rationale behind these rate reductions:
“We’re delighted to lower rates on our two-year fixed mortgages, reducing them by 30bps across the board. With starting rates as low as 3.34%, this is our most competitive offering in almost three years.
Brokers have indicated a rising demand for two-year fixes, as many landlords prefer the certainty of fixed rates over a short-term period, anticipating more favorable borrowing conditions in the near future. Our latest mortgage products have been tailored to meet this demand and will play a crucial role in supporting investment in the private rental sector.”
Why This Matters for Landlords
With interest rates fluctuating, Paragon Bank’s latest mortgage deals provide a valuable opportunity for landlords to secure competitive financing. Whether purchasing or remortgaging, these lower rates can enhance profitability and support investment in energy-efficient properties.
For landlords seeking the best BTL mortgage options, now is an opportune time to explore Paragon Bank’s latest offerings.
