Paragon Bank has made significant updates to its buy-to-let (BTL) mortgage offerings, introducing rates that begin at 3.55%. This change is particularly relevant for landlords and investors looking to finance properties, as it provides more competitive options in a fluctuating mortgage market.
TL;DR: Paragon Bank’s updated BTL mortgage rates start at 3.55%, benefiting landlords and investors by offering competitive financing options at up to 80% loan-to-value (LTV).
What are the new mortgage rates?
The refreshed BTL range from Paragon includes two- and five-year fixed-rate options available at 60%, 70%, 75%, and 80% LTV. For properties with EPC ratings of A to C, two-year fixed rates start from 3.55%, while those with lower ratings begin at 3.60%. Five-year fixed rates for green mortgage products start at 4.95%, with equivalent rates for lower-rated properties at 5.00%. For landlords managing houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), two-year fixed rates start from 3.70% at 75% LTV, and five-year fixed rates begin at 5.10%.
What does this mean for landlords and investors?
The updated rates provide landlords with more affordable financing options, particularly for those investing in energy-efficient properties. The introduction of cashback options, up to £1,000, further enhances the attractiveness of these products. This shift reflects Paragon Bank’s ability to adapt to market changes, allowing landlords to secure better deals even amid volatile swap rates.
How do these rates fit into the mortgage market?
With rates starting at 3.55%, Paragon’s offerings are competitive within the current mortgage market. Landlords should compare these rates with other lenders to ensure they are getting the best deal possible. For a comprehensive view, consider checking mortgage rate comparison tools to find the most suitable options.
Frequently asked questions
What types of properties qualify for these rates?
The new rates apply to a range of property types, including single self-contained units and houses in multiple occupation (HMOs), with specific rates varying based on the property’s energy performance certificate (EPC) rating.
Are there any fees associated with these mortgages?
Yes, application fees vary depending on the product type and property category, so it’s essential for borrowers to review these details when considering their options.