Paragon Bank has added two new remortgage-only products to its offering.
Both products come with £500 cashback and a free mortgage valuation and are available to landlords remortgaging in their personal names or through their limited company.
The first deal aimed at portfolio landlords looking to remortgage at up to 75% loan to value (LTV) on single self-contained properties. A rate of 3.45% is fixed for five years, with an APRC of 4.20% and a product fee of 1.50%.
The second, also offered at 75% LTV, is available on HMOs and multi-unit blocks (MUB) at a rate of 3.65% fixed for five years. The product fee is set at 2.00% and the APRC is 4.30%.
Early redemption charges (ERC) of 5% are in place during years one and two, charged at 4% for years three and four and 3% for year five.
The proportion of buy-to-let remortgage business is expected to grow during 2021 as Paragon research revealed that buy-to-let mortgage brokers will switch their attention to the remortgage of five-year after the Stamp Duty holiday ends at the end of March.
Moray Hulme (pictured), director for mortgage sales at Paragon Bank, said: “The introduction of a 3% buy-to-let Stamp Duty surcharge in April 2016 lead to a marked increase in landlords choosing five-year fixed rate mortgages.
“Research we have carried out confirmed our expectation that a significant number of brokers will be looking to support landlords who are in the process of remortgaging now that those five-year mortgages are reaching maturity. The launch of our two remortgage products is a timely and useful addition to our range for brokers who are targeting this business.”