Paragon Bank has enhanced its buy-to-let (BTL) tracker mortgage offerings by introducing new switch and further advance products aimed at existing customers. This expansion is significant as it provides landlords with more options at competitive rates, which can support their investment strategies in a fluctuating market.
TL;DR: Paragon Bank has launched new tracker products for existing customers, including switch options and further advances; this development offers landlords more competitive financing choices.
What New Products Are Available?
The latest offerings from Paragon include switch products available at up to 80% loan-to-value (LTV), while further advances can be secured at up to 75% LTV. Rates for these products start from competitive levels, with various fee options available. For houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), rates begin at a similar competitive level, with fee structures that provide flexibility.
How Do These Changes Impact Landlords?
For landlords, the introduction of these new tracker products means greater flexibility and potentially lower borrowing costs. The switch option with no fee could be particularly appealing for those looking to refinance without incurring additional upfront costs. The early repayment charges should also be considered when evaluating these options.
What This Means for the Mortgage Market
The expansion of Paragon’s buy-to-let tracker range reflects a growing trend among lenders to cater to the needs of landlords in a competitive mortgage market. As brokers and landlords engage with these new products, it may lead to increased competition among lenders, potentially resulting in more favourable terms for borrowers across the sector. For those interested in exploring options, checking current mortgage rates can be beneficial.
Frequently asked questions
What are the fees associated with Paragon’s new tracker products?
The new tracker products have fees that vary depending on the chosen rate option.
What is the maximum LTV for these new offerings?
The maximum loan-to-value (LTV) for the new switch products is 80%, while further advances are available up to 75% LTV.