Paragon Bank has unveiled a range of new mortgage options specifically designed for buy-to-let landlords with energy-efficient properties. Paragon Bank’s latest venture introduces five-year fixed-rate mortgage products, catering exclusively to buy-to-let landlords.
What makes these mortgages stand out is their focus on properties with high energy efficiency ratings. These “green” properties, identified by their A-C energy performance certification (EPC), are now eligible for these special mortgage products under Paragon’s 5% fee option. This initiative is suitable for purchasing or remortgaging single self-contained (SSC) properties.
Louisa Sedgwick, the commercial director at Paragon, highlights a growing positivity in the market. She said, “Speaking to both brokers and landlords, we know that many are more positive than they were during last year and we’re already seeing this reflect in business levels. This reinforces our belief that landlords want to invest in the sector in response to continued strong levels of tenant demand. We’re aiming to support this by providing landlords with more choice, offering 5% and nil fee products as well as options that include £750 cashback, which can be used to cover legal expenses, for example.”
Competitive Rates and Cashback Offers
The interest rates for these green SSC products start at a competitive 4.89%. In contrast, properties with lower EPC ratings see a slight increase in rates to 4.94%. For more complex properties like Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUB), the rates are set at 5.14%.
Nil Fee Options
For those seeking more flexibility, Paragon Bank also offers nil fee options, which come with the advantage of £750 cashback on selected mortgages. The rates for these options stand at 5.94% for green SSC products, 5.99% for lower EPC rated properties, and 6.19% for HMO and MUB properties.
Loan-to-Value and Coverage Ratios
All products come with interest coverage ratios (ICRs) calculated based on the initial rates. They are available at up to 75% loan-to-value (LTV), catering to landlords applying either through limited company structures or in personal names across England, Scotland, and Wales.
Suffolk Building Society’s Offers for Expat Landlords
Expatriate landlords are not left out, with Suffolk Building Society reducing rates on its five-year offers by up to 0.14%. The fixed rate now stands at 5.95%, followed by the standard variable rate. These offers have a LTV ratio of 80% and range between £75,000 and £1 million in value, with fees set at £199 for application and £1,499 for completion.
The Mortgage Works
The Mortgage Works is also shaking things up with reduced rates on selected buy-to-let switcher loans. These new rates include:
- Two-year fixes at 3.99% (down by 0.05%), with a 65% LTV and a £3,995 fee.
- Three-year fixes at 4.39% (down by 0.1%), with a 65% LTV and a £1,495 fee.
- Five-year fixes at 4.49% (down by 0.15%), with a 65% LTV.
Relaxed Rates from Newcastle Intermediaries
Lastly, Newcastle Intermediaries is offering property investors lower fixed rates and relaxed stress rates. Their new rates include two-year fixes at 5.10% (APRC 6.9%) up to 80% LTV, with a £999 product fee and early repayment charges applicable until mid-2026.