Paragon Cuts BTL Rates by up to 20bps

Paragon Bank has just slashed rates on many of their buy-to-let (BTL) mortgages, making it a bit easier to make those rental profits.

Lower Rates, More Options

Paragon Bank has reduced rates on 20 of their BTL mortgages by up to 20 basis points (bps). That means you could save a bit of cash on your monthly mortgage payments. And, they’ve made it easier to choose the right mortgage for you. Now, you can pick from deals with no fees at all, a flat fee of £2,995, or a percentage fee.

Two-Year Fixed Rates: A Competitive Edge

For those who like to lock in their payments for a shorter period, Paragon’s two-year fixed rate mortgages start at a very attractive 4.60%. That’s a great deal for those buying or remortgaging properties with an energy rating of A to C. But remember, they’ll calculate your interest coverage ratio (ICR) using the initial rate plus 2%. That just means they’ll make sure you have enough income to cover your mortgage payments even if interest rates rise.

Five-Year Fixed Rates: Plenty of Flexibility

If you prefer the security of a longer fixed term, Paragon offers five-year fixed rates starting at 5.45% for those energy-efficient homes with an EPC rating of A to C. However, for homes with a lower rating of D or E, you’ll pay 5bps more. That’s just a small increase, but it’s worth keeping in mind.

Here’s what’s new:

£2,995 Fee Option: This option is now available for up to 75% LTV (loan-to-value), previously it was limited to 65%. You can use it for buying or remortgaging HMOs (houses in multiple occupation) and MUBs (multi-unit blocks).
5% Fee Option: Paragon has added a 5% fee option, with rates starting at 4.74% over five years. This might be a good choice for those looking to save on upfront costs.

Who’s It For?

These deals are available for individual landlords and companies looking to invest in property.

What’s The Big Deal?

Paragon’s decision to reduce rates and offer more options comes at a time when the economic outlook is looking a little brighter. Louisa Sedgwick, Paragon’s new managing director for mortgages, said “We’ve simplified our offering, and borrowers can choose from deals with nil product fees, percentage fees or a flat fee of £2995.”

So, if you’re a landlord looking to buy or remortgage, these new deals from Paragon Bank could be a great opportunity to get a competitive rate and secure your investment.