Paragon Bank launches new five-year fixes

Paragon Bank has added new five-year fixed rate products to its range of buy-to-let mortgages.

Rates start at 4.89%, available on Paragon’s 5.00% fee option, which is suitable for the purchase or remortgaging of single self-contained (SSC) properties categorised as ‘green’ due to energy performance certification (EPC) of A-C. This increases to 4.94% for homes with lower energy efficiency ratings and 5.14% for houses in multiple occupation (HMO) and multi-unit blocks (MUB).

The specialist lender is also offering fee-free options, with £750 cashback available on selected mortgages. These are priced from 5.94% for the ‘green’ SSC product, rising by 5bps for standard energy efficiency and to 6.19% for HMO and MUB.

All of the five-year fixed rate products included in the launch have interest coverage ratios (ICRs) calculated in line with initial rates. They are offered at up to 75% LTV for landlords applying through limited company structures or in personal name in England, Scotland and Wales.

Louisa Sedgwick, commercial director at Paragon Bank, said: “Speaking to both brokers and landlords, we know that many are more positive than they were during last year and we’re already seeing this reflect in business levels.

“This reinforces our belief that landlords want to invest in the sector in response to continued strong levels of tenant demand. We’re aiming to support this by providing landlords with more choice, offering 5% and nil fee products as well as options that include £750 cashback, which can be used to cover legal expenses, for example.”