Paragon expands buy-to-let range with new five-year fixes

Paragon Bank has expanded its range of buy-to-let mortgages for portfolio landlords with six five-year fixed rate products, offering both 2.5% and £1999 fee options.

Paragon’s 2.5% fee five-year fixed rate product starts at 5.35% for energy efficient (rated A-C) single self-contained (SSC) homes, increasing to 5.40% for properties with EPC ratings of D or E.

The lender is also offering a rate of 5.60% for portfolio landlords purchasing or remortgaging HMOs or multi-unit blocks (MUBs).

Alternatively, the £1,999 fee option is priced at 5.70% for SSCs with EPC ratings of A-C, increasing by 5bps to 5.75% for properties rated EPC D or E, and 5.90% for HMOs and MUBs. A maximum loan size of £250,000 is applied to these products.

All products are available to landlords with four or more buy-to-let mortgaged properties, applying in personal name or utilising limited company structures in England, Scotland and Wales. ICRs are calculated in line with initial rates and products are subject to an application fee of £299.

Louisa Sedgwick, commercial director at Paragon Bank, said: “We continuously monitor the market and review our product suite to ensure we’re offering value for borrowers. Equally important as all of the number crunching is listening to brokers who have told us that low-fee options would offer a solution in scenarios where purchase prices are lower or capital doesn’t appreciate as quickly.

“This is where these products fit in. We’re broadening the choice on offer to brokers, ensuring we have products in our range to cater for all landlords regardless of the loan size.”