Paragon Bank has extended the window in which buy-to-let mortgage customers can lock in a remortgage rate from three months to six months.
The lender believes it is amongst the first specialist lenders to offer borrowers the chance to remortgage up to six months ahead of their current buy-to-let product reaching maturity.
Brokers are offered a procuration fee of 0.30% for every product switch that they introduce.
With rates starting at 2.95%, Paragon has a range of two-year and five-year fixed-rate products aimed at those looking to switch to a new loan.
Products are available for non-portfolio landlords wishing to finance single self-contained units (SSC) and for portfolio landlords – those with four or more mortgaged properties – borrowing on houses in multiple occupation (HMO), multi-unit blocks (MUB) and those operating as limited companies or limited liability partnerships.
Moray Hulme (pictured), director for mortgage sales said: “In 2017, changes to PRA underwriting standards led to a significant increase in the number of buy-to-let mortgages being written with rates fixed for five years. We’ve already seen how this has started to drive remortgage business and we foresee this as continuing throughout 2022.
“With the Bank of England recently raising base rate by 0.25% [sic] to 0.50%, and further increases expected to come throughout the duration of the year, I expect there will be a number of borrowers who will be keen to switch to a new product sooner rather than later, locking in one of the competitive deals currently available.
“We’ve listened to the market and know that extending the window in which borrowers can switch to a new product by three months will be a welcome step, helping to provide landlords with some security amidst the current economic change.”