Paragon Bank has added five remortgage products to its range of buy-to-let mortgages.
The loans are available at 65% and 75% loan to value (LTV) and are suitable portfolio landlords – those with four or more mortgaged properties – operating as individual landlords, limited companies or limited liability partnerships.
At 75% LTV, loans are available for remortgaging single self-contained units (SSC), houses in multiple occupation (HMO) and multi-unit blocks (MUB). Rates start at 2.90% when remortgaging on properties with EPC ratings of A – C and fixed over two years, rising to 3.00% for properties rated EPC D or E. When fixed over 5 years, rates for the 75% LTV products are priced at 2.98% for EPC A – C properties and 3.08% for homes with energy efficiency ratings below this.
The 65% LTV product has an initial rate of 2.77%, fixed over five years, and is available for remortgaging SSC.
Each of the products includes a free valuation, cashback and incurs no application fees. The minimum loan amount is £30,000 and maximum is £1m up to 75% LTV, £1.5m up to 70% LTV and £4m up to 65% LTV.
Moray Hulme, director for mortgage sales at Paragon Bank, said: “The popularity of five-year fixed rate mortgages saw a huge increase in 2017 and with many of these loans now maturing, we anticipate a rise in landlords who will be looking for competitive finance for their portfolios.
“To support these investors, we’ve expanded our range of remortgage products, offering landlords more choice and some certainty through the option to fix rates for two or five years.”
All five-year products include an interest coverage ratio (ICR) starting at 4.00% and are subject to Early Repayment Charges (ERC) of 5% in years one and two, 4% during years three and four and 3% for year five.