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Paragon Bank slashes buy-to-let rates and unveils new fixed-rate deals

Paragon Bank has taken a significant step to attract UK landlords by cutting rates on its core buy-to-let mortgage range and introducing six new five-year fixed-rate options. The rate reduction of 15 basis points affects ten existing products, and the new offerings are designed to provide more flexibility and choice for property investors.

Attractive Rates for Energy-Efficient Properties
The bank has launched three new five-year fixed-rate mortgages with a 5% fee, starting at an appealing 4.60% for properties boasting Energy Performance Certificate (EPC) ratings of A to C. Louisa Sedgwick, Mortgages Commercial Director at Paragon Bank, explained the strategy behind these rates: “We’re reducing rates across our core range, as well as introducing some flexible new five-year options to offer landlords more choice.”

For properties with lower EPC ratings of D or E, the rate is slightly higher at 4.65%, while houses in multiple occupation (HMO) and multi-unit blocks (MUB) will see rates at 4.80%. Paragon’s approach aims to incentivise energy-efficient investments, which aligns with broader sustainability goals.

No-Fee Options Also Available
For landlords preferring no upfront fees, Paragon has introduced nil-fee five-year fixed-rate mortgages. These rates are set at 5.65% for EPC A-C properties, 5.70% for standard properties, and 5.90% for HMOs and MUBs. All these options are available up to 65% loan-to-value (LTV) and come with a £750 application fee, which is offset by £750 cashback upon completion.

Sedgwick emphasised the competitive nature of these offerings: “On products where a £750 application fee is charged, rates are lower compared to our core range. Customers will receive £750 cashback on completion, offering competitive pricing for landlords who are confident that their application will go through.”

Encouraging Pre-Valuation Assessments
To aid both brokers and landlords, Paragon Bank encourages the use of their ‘pre-valuation assessment’ service. This initiative helps in evaluating the property’s eligibility before committing to the mortgage process. Sedgwick elaborated, “To get a better idea of whether the property will stack up, we always encourage brokers to talk through cases with us. Our qualified surveyors assess whether it’s fit for us to lend on, which helps landlords feel more confident in proceeding.”

Competitive Edge in a Challenging Market
Paragon’s strategic rate cuts and the introduction of new mortgage products highlight their commitment to supporting UK landlords amid a fluctuating property market. By offering incentives for energy-efficient properties and flexible mortgage terms, Paragon aims to position itself as a go-to lender for property investors.

As landlords navigate the complexities of the current market, Paragon’s tailored mortgage solutions provide valuable options, ensuring that investors can find competitive and suitable financial products to support their investment goals.