Paragon Bank has added four limited-edition products and four switch products.
Four limited edition products are available for portfolio landlords – those with four or more mortgaged properties – purchasing or remortgaging Single Self-Contained (SSC) properties. Fixed for five years, rates start at 2.67% on the 50% loan to value (LTV) mortgage and 2.77% on the 60% LTV loan, each increasing by 10 basis points for homes rated EPC D and E.
For both portfolio and non-portfolio landlords who are looking to switch to a new mortgage, Paragon has announced four 75% LTV products.
Portfolio landlords are offered finance for Houses in Multiple Occupation (HMO), Multi-Unit Blocks (MUB) and SSC. The initial rate is 3.00% when fixed over two years, rising to 3.08 when borrowed over a five-year term.
Non-portfolio landlords with SSC can choose between two-year and five-year fixed rate products, with rates set at 3.00% and 3.08% respectively.
All four limited edition products feature zero application fees and are offered with free valuations and £750 cashback. They include an interest coverage ratio (ICR) of 4.00%.
Switch products incur nil transfer fees. ICR is set at 4.00% on five-year loans and 5.50% on two-year products.
Paragon’s five-year fixed rate products 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. ERC change to 3% in years one and two on the two-year fixed rate products.
Moray Hulme (pictured), Paragon’s director for mortgage sales, said: “Since the end of lockdown, we’ve seen an increasing population of landlords who do not wish to leverage their properties as much as they may have done previously. As a responsible lender, we have launched some 50% and 60% LTV products to cater for this market and reward this prudent approach.
“In addition, we made a commitment to keep our switch products in line with our core range and so this is an extension of that promise, matching the remortgage only products we launched last week.”
