Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Paragon Bank Cuts Buy-to-Let Mortgage Rates by Up to 15bps

Paragon Bank has reduced rates by up to 15 basis points across its fixed-rate buy-to-let mortgage range. The new rates apply to both its Core and Tailored propositions, with products now starting from 3.4%.

The Core range covers two and five-year fixed-rate mortgages for purchases and remortgages of single self-contained properties, Houses in Multiple Occupation (HMOs), and multi-unit blocks (MUBs). At 75% loan-to-value (LTV), two-year fixed rates now start from 3.4% for green mortgages on single self-contained properties with Energy Performance Certificate (EPC) ratings of A-C, and 3.45% for properties rated D or E. Both options include a 5% fee and £500 cashback. For HMOs and MUBs, equivalent products start from 3.55%, also with a 5% fee and £500 cashback.

Five-year fixed rates at 75% LTV begin at 4.8% for green mortgage-eligible properties and 4.85% for those rated EPC D or E, each with a 5% fee and £1,000 cashback. For HMOs and MUBs, five-year fixed rates start from 4.95%, with the same fee and cashback structure.

Paragon has also reduced pricing across its Tailored proposition, which supports buy-to-let applications outside standard lending criteria. At 75% LTV, two-year fixed rates start from 5.15% for green mortgage-eligible single self-contained properties and 5.30% for HMOs and MUBs. Five-year fixed rates start from 5.55% and 5.70% respectively, with £1,000 cashback available on the five-year products.

These changes may be relevant to letting agents and inventory clerks working with landlords seeking new or remortgage options, particularly for properties with higher EPC ratings or those in the HMO and MUB sectors.