Paragon and West One expand buy-to-let ranges

Paragon has launched two new two-year discounted variable rate products and two three-year fixed rate products.

The products are available for portfolio landlords purchasing or remortgaging HMOs, multi-unit blocks and single self-contained properties.

The two-year discounted variable rates start from 2.99%, while the three-year fixes start from 4.69% and come with a £500 cashback. The products are available at 75% LTV and are offered with free mortgage valuations.

West One has launched a new two-year discounted tracker range for landlords with non-standard properties and who want the flexibility to switch deals without penalty.

The range starts at 3.54% and is open to landlords wishing to buy or refinance a HMO, multi-unit block or another specialist property.

The deals come free of early repayment charges, so they would suit landlords who believe interest rates will settle – or even fall – over the medium term but who want the option to break free if they need to.

Separately, the lender has launched two new limited edition five-year fixed rates for its standard and specialist ranges.

The standard W1 five-year fixed rate is priced at 4.59%, comes with a 1.5% arrangement fee and is available to landlords with standard properties.

The specialist W1 five-year fix starts at 4.79% with a 2% arrangement fee and is available to landlords with HMOs, MUBs and other specialist properties.

Rental calculation is available at payrate for both of the new five-year fixed rate products.

Moray Hulme, director of mortgage sales at Paragon, said: “After analysing the market we have introduced some new buy-to-let products that offer landlords more choice.

“We’ve added two-year variable rate products to our range to provide finance that has a headline rate significantly cheaper than many of the two-year fixed rate products currently available, enabling investors to respond to the strong demand for rented homes we’re seeing currently.

“In addition, with rates expected to fall beyond the anticipated peak in two years, we’re able to offer competitively priced mortgages that are fixed for three years, providing landlords with certainty.”

Andrew Ferguson, managing director of West One’s buy-to-let division, said: “We are constantly reviewing our range and we believe that these new products offer compelling new options to brokers and their clients.

“We have experienced strong demand for our discounted tracker range, in particular, which is why we have decided to launch a set of products aimed at landlords buying specialist properties as well.

“While interest rates look set to continue rising, discounted trackers typically have lower rates than fixed-rate deals, so they will be suitable for landlords who want to keep an eye on costs but who also believe that interest rates will stabilise over the medium term.

“Add into the mix that there are no early repayment charges and we think it could be a very interesting proposition for many borrowers.”