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Paragon Bank Unveils No-Fee Five-Year Buy-to-Let Fixed-Rate Mortgages

Paragon Bank has introduced a series of five-year fixed-rate buy-to-let mortgages, offering borrowers nil product fees, competitive rates beginning at 5.80%, and a generous £750 cashback on selected products.

Designed for portfolio landlords and available at loan-to-value (LTV) ratios of up to 70%, these mortgages cater to various property types and investor needs. The 5.80% starting rate applies to Paragon’s green mortgage, ideal for acquiring or refinancing single self-contained (SSC) properties boasting an EPC rating of A, B, or C. For properties with lower EPC ratings, the rate increases by 5 basis points.

Landlords seeking financing for Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUB) can access rates starting at 6.05%.

Importantly, Paragon Bank considers interest coverage ratios (ICR) in line with the initial rates, ensuring affordability for borrowers. These mortgage products are open to landlords applying through limited company structures or in their personal names, applicable in England, Scotland, and Wales.

Louisa Sedgwick, Commercial Director at Paragon Bank, emphasized the appeal of these new offerings. She stated, “While we know that initial rates starting at 5.80% won’t work for all borrowers, charging no product fees can make the mortgages we’ve launched today really appealing for others, particularly those buying or remortgaging higher value properties. We’ve also introduced £750 cashback on selected products which could be used towards legal costs, for example.”

Sedgwick expressed enthusiasm about the current state of the mortgage market, highlighting the decline in swap rates, which suggests increased stability. This positive trend has enabled Paragon Bank to adjust its product range, making their offerings more attractive to landlords.

With Paragon Bank’s new no-fee buy-to-let mortgages, investors in the property market have an opportunity to access competitive rates and incentives, potentially facilitating the acquisition or refinancing of a wide range of properties.