Paragon launches cheapest five-year fix in almost three years

Paragon Bank has launched a new range of limited edition buy-to-let mortgages, offering its cheapest five-year fixed rate since August 2022.

Starting at 4.29%, the lender’s cheapest five-year fix is available for landlords purchasing or remortgaging single self-contained (SSC) properties with EPC ratings of A to C. Five-year options are also available for SSCs rated EPC D or E and HMOs, with interest charged at 4.34% and 4.64% respectively.

These mortgages are available at up to 65% LT and have a 5.00% product fee. The lender is also offering fee-free versions priced one-percentage point higher than the corresponding 5.00% fee products.

Available to landlords operating through limited companies or individuals in England, Scotland and Wales, Paragon’s latest limited edition five-year fixes have a £150 application fee and 5% interest coverage ratio (ICR).

James Harrison, mortgages product manager at Paragon Bank, said: “We’ve launched these limited edition products to provide landlords with more choice and offer solutions that suit a broader spectrum of customers. Offered at a lower loan-to-value of 65%, these products will be particularly appealing to those that can put down a slightly larger deposit to benefit from lower rates.

“Our expertise means that we’re sometimes seen as an HMO or multi-unit block lender. While it is true that we do have lots of experience in this space and work with established landlords, we also support newer entrants to the market who may be growing their portfolios with more simple propositions, such as single self-contained properties.”