Paragon Slashes Rates on Two-Year BTL Mortgages

Paragon Bank has just announced some tempting new rates on their two-year fixed-rate buy-to-let mortgages. So, if you’re looking to buy or remortgage a property, now could be the perfect time to grab a deal.

Paragon are offering rates starting from just 3.89% for single self-contained properties with good energy ratings (A to C). That’s a great deal, especially when you consider that you can borrow up to 70% of the property’s value (that’s called a 70% loan-to-value, or LTV).

However, if your property has an EPC D or E rating, the rates start a little higher at 3.94%.

Options for Different Needs

They also have two-year fixed-rate options available for landlords who want to borrow up to 75% of the property value. You can choose from:

4.80% with a 3.00% product fee.
5.55% for EPC A to C properties, or 5.60% for EPC D and E properties with a 1.50% product fee.

It’s all about finding the right balance for your individual circumstances.

Special Deals for HMOs and MUBs

This isn’t just for your standard single-property landlord either! Paragon also offers a great range of products for landlords with Houses in Multiple Occupation (HMOs) and Multi-Unit Blocks (MUBs). The rates are competitive, with starting points of 4.14% for 70% LTV and 5.05% for 75% LTV.

The Fine Print

Just remember, there are some important things to bear in mind:

Interest Coverage Ratio (ICR): Paragon uses an ICR of initial rate plus two percentage points to calculate your ability to cover mortgage payments.
Fees: All these deals come with a £299 application fee, plus the product fee.
Valuation: Paragon will provide a free mortgage valuation.
Eligibility: These products are available to both individuals and limited companies in England, Scotland, and Wales.

Paragon Speaks Out

Louisa Sedgwick, Paragon Bank’s mortgages commercial director, said: “We’ve seen a clear rise in landlords seeking two-year fixed-rate mortgages this year. These new rates, with their diverse LTV and fee options, provide landlords with an excellent choice to suit their needs.”

So, if you’re a landlord looking for a great deal on a fixed-rate mortgage, this news from Paragon is well worth checking out.