Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Paragon Bank Expands Buy-to-Let Tracker and Fixed Rate Options
Paragon Bank has introduced new enhancements to its buy-to-let (BTL) Bank Base Rate (BBR) tracker range, including a two-year tracker with a 2% product fee. The updated range is available up to 75% loan-to-value (LTV) and covers single self-contained properties (SSCs), houses in multiple occupation (HMOs), and multi-unit blocks (MUBs).
For SSC properties at 75% LTV, the new two-year tracker is priced from BBR plus 1.00% (currently 4.75%), with a 2.00% product fee. This product includes a free mortgage valuation, no application fee, and no early repayment charges. For HMOs and MUBs at the same LTV, the two-year tracker starts from BBR plus 1.35%, also with a 2.00% fee, and offers the same benefits of no early repayment charges and a free valuation.
Paragon Bank has also reduced rates on selected two-year fixed-rate mortgages by 15 basis points. Within the SSC range, rates start at 3.40% for properties with an EPC rating of A to C at a 5.00% fee level, or 3.45% for properties with lower energy efficiency. A mid-fee option of 3.00% is available from 4.40%, and a nil fee alternative is offered from 5.90%. Some products include free valuations and no application fees, with £500 cashback available on the higher fee option.
For HMOs and MUBs, fixed-rate pricing starts from 3.55% at a 5.00% fee, 4.55% with a 3.00% fee, and 6.05% on a nil fee basis. These products also include free valuations, with application fees set at £299. All fixed-rate products carry early repayment charges of 3% in each of the first two years and revert to Paragon’s standard variable rate, currently 7.35%, less 1.25%.
These changes provide landlords with a wider range of options for structuring their borrowing, which may be of interest to letting agents and inventory clerks managing a variety of property types.
Source: Mortgage Strategy