Paragon Bank has announced a decrease in the rates of its five-year fixed-rate buy-to-let mortgages, marking the second time in a fortnight that the lender has opted to reduce the price of these limited-edition mortgage products.
The bank’s five-year fixed-rate buy-to-let mortgages, which are available for up to 75% loan-to-value (LTV), now start at a rate of 5.60%. These mortgages come with a 5% fee, and they are offered with free valuation. The reductions apply to portfolio landlords looking to purchase or remortgage single self-contained properties (SSCs), houses in multiple occupation (HMOs), and multi-unit blocks (MUBs).
The specialist lender’s recent decision has resulted in a 15 basis points reduction on the price of its limited-edition five-year fixes. Rates now start at 5.60% for the purchase or remortgage of environmentally friendly properties with EPC ratings ranging from A to C, 5.65% for SSCs, and 5.85% for HMOs and MUBs.
The revised buy-to-let mortgages maintain the existing 75% LTV, and interest coverage ratios are calculated at the same rates as the initial interest rates. Moreover, each of the three mortgage options includes a complimentary valuation.
Commenting on the move, Louisa Sedgwick, Commercial Director at Paragon Bank, remarked: “We recently reduced rates on our five-year fixes and with the swaps market continuing on its recent run of relative stability, we’re in a position to pass this on to customers, further reducing rates on our 5% fee products. This should see us amongst the most competitive five-year fixed-rate limited company buy-to-let mortgages with 5% fee or less.”
Sedgwick also cautioned that the market’s current fluidity might necessitate rapid responses from lenders. She emphasized that the reduced limited-edition products might not remain available for an extended period, stating, “The fluidity that has characterised the market this year means that lenders sometimes have to respond to abrupt changes so products may not be available for long.”
The updated mortgage offers are open to portfolio landlords, those owning four or more buy-to-let mortgaged properties, across England, Scotland, and Wales. The landlords can operate as individuals or through limited companies. The reduced rates and specialized mortgage products further reflect Paragon Bank’s ongoing commitment to delivering competitive financial solutions to its customers.
