Paragon Bank launches limited edition 60% LTV buy-to-let range

Paragon Bank has expanded its buy-to-let mortgage range with the launch of new limited edition 60% LTV products.

The new range comprises six products for single self-contained (SSC) properties and three products for HMOs and multi-unit blocks (MUBs), with the option to fix rates over two and five-year terms. 

For SSCs, rates start from 4.35% for Paragon’s green mortgage product, available on properties with an EPC rating of A-C. This increases by 5bps for homes with lower energy efficiency ratings.

For landlords financing HMOs or MUBs, rates start at 4.60%. 

The products are available with either a 3% product fee or fee-free, giving landlords flexibility depending on how they structure borrowing costs. They are offered on a limited edition basis and are available to landlords operating in both personal name and limited company structures.

The SSC products are available with no application fee, while HMO and MUB loans are subject to a £150 application fee. Interest coverage ratios (ICRs) are calculated at initial rate plus two percentage points. 

All products qualify for Paragon’s multi property proposition, which applies to applications of between four and 99 properties. This enables landlords to submit a single application covering multiple properties, incurring no application fees and benefitting from reduced legal requirements, with only one legal advice certificate required across the overall application, rather than one per property.

James Harrison, product manager at Paragon Bank, said: “We continue to see demand from landlords who are choosing to borrow at lower LTVs. We’ve responded by extending our 60% LTV offering across SSC, HMO and MUB properties, while giving landlords the flexibility to choose between 3% and nil-fee structures.

“Economic instability fuelled by the war in Iran continues to influence funding costs but we remain responsive to market conditions. With swaps plateauing and rates slightly easing recently, we’re able to provide more options for landlords with this keenly priced limited edition range.”