Paragon Bank has introduced four new limited edition five-year fixed-rate buy-to-let mortgages, providing a fresh range of options for landlords across England, Scotland, and Wales. These new products cater to both individual landlords and limited companies, offering attractive rates and a substantial fee of £2,995.
Product Specifics and Eligibility
The newly launched mortgages are split into two categories: one for landlords with three or fewer mortgaged buy-to-let properties, and another for those with four or more. Available for single self-contained properties up to 65% loan-to-value, these products aim to cater to a diverse range of landlord needs. Interest rates start at 5.45% for properties with an EPC rating of A-C, while those with EPC ratings of D or E can secure financing at 5.50%.
Louisa Sedgwick, Mortgages Commercial Director at Paragon Bank, highlighted the bank’s commitment to providing tailored solutions for landlords. “We’ve launched these limited-edition products to provide landlords with more choice and offer solutions that suit a broader spectrum of customer,” Sedgwick stated. She emphasized the bank’s support for both established landlords and newcomers to the market.
Interest Coverage and Application Details
Interest coverage ratios for these new products are calculated based on the initial rates. These mortgages are available to both individual applicants and limited companies, broadening their appeal. “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,” Sedgwick added.
Appeal to a Wide Range of Investors
Paragon’s new mortgage products are particularly attractive to those able to make a larger deposit, as they offer the benefit of lower rates at a 65% loan-to-value ratio. Sedgwick noted, “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.”
These new offerings from Paragon Bank reflect a strategic move to enhance the options available to landlords, supporting both seasoned investors and those new to the buy-to-let market. As the property market continues to evolve, these tailored mortgage products aim to meet the diverse needs of landlords looking to expand or optimise their property portfolios.
