Paragon Bank Cuts BTL Rates & Offers New 5-Year Fixes

Paragon Bank has just slashed rates on its main buy-to-let (BTL) mortgage deals, giving you more money in your pocket.

Paragon Bank has taken 15 basis points off 10 of its most popular BTL mortgages. This means you’ll be paying less interest on your loan, saving you money every month.

New 5-Year Fixed Rate Mortgages – A Stable Investment

Want a bit more certainty about your future payments? Paragon has also launched a new range of six five-year fixed rate mortgages. This gives you the peace of mind of knowing exactly how much your monthly payments will be for the next five years, even if interest rates rise.

Energy-Efficient Homes Get A Boost

Want to get a better deal? Paragon is offering a lower rate for landlords who buy or remortgage properties with an energy performance certificate (EPC) rating of A to C. This means if your property is energy-efficient, you’ll get a lower mortgage rate.

Here’s the breakdown:

EPC A to C: You can get a five-year fixed rate starting at 4.60% (with a 5% fee) or 5.65% (with no fee).
Standard Product (EPC D or E): You can get a five-year fixed rate starting at 4.65% (with a 5% fee) or 5.70% (with no fee).
HMOs and MUBs: You can get a five-year fixed rate starting at 4.80% (with a 5% fee) or 5.90% (with no fee).

Loan to Value (LTV) and Fees

These new mortgages are available up to 65% loan-to-value (LTV), meaning you can borrow up to 65% of the value of your property.

There is a £750 application fee, but you’ll get a £750 cashback on completion, making the net cost of the application zero!

What Paragon Says About The New Deals

Louisa Sedgwick, mortgages commercial director at Paragon Bank, said: “We’re reducing rates across our core range, as well as introducing some flexible new five-year options to offer landlords more choice.”

She also added, “In addition to this rate cut, 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.”