Paragon Bank has recently updated its buy-to-let (BTL) mortgage offerings, introducing rates that start at 3.55%. This change is significant for landlords and investors, as it provides more competitive options in a fluctuating mortgage market.
TL;DR: Paragon Bank’s new BTL mortgage rates begin at 3.55%, impacting landlords seeking competitive financing options; products are available at up to 80% loan-to-value (LTV).
What are the new rates for buy-to-let mortgages?
The refreshed BTL range includes two- and five-year fixed-rate options with LTVs of 60%, 70%, 75%, and 80%. For properties with EPC ratings of A to C, two-year fixed rates start at 3.55% under Paragon’s green mortgage initiative. For properties rated below C, rates begin at 3.60%. Five-year fixed rates for green products start at 4.95%, while those for lower-rated properties start at 5.00%.
How do these changes affect landlords?
Landlords financing houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) can benefit from two-year fixed rates starting at 3.70% at 75% LTV, with five-year rates beginning at 5.10%. Additionally, selected products offer cashback of up to £1,000, making these options more attractive for both new purchases and remortgages.
What should borrowers and brokers watch for in the mortgage market?
James Harrison, product manager at Paragon Bank, noted that despite volatile swap rates, their pricing strategies allow for swift responses to market changes. Borrowers and brokers should monitor future adjustments in rates and product offerings, as market conditions can shift rapidly. For the latest options, consider checking current mortgage rates.
Frequently asked questions
What types of properties qualify for Paragon’s green mortgage products?
Paragon’s green mortgage products are available for properties with EPC ratings of A to C, providing lower interest rates for energy-efficient homes.
Are there any fees associated with Paragon’s BTL products?
Yes, application fees vary depending on the product type and property category, so it’s important for borrowers to review these details before applying.