Paragon Bank has launched four new five-year fixed rate buy-to-let mortgages for landlords.

The new deals come with lower initial pay rates and fees, alongside a higher standard variable rate.

Plus the deals come with £350 cashback.

The buy-to-let mortgages are available for portfolio landlords – those with four or more mortgaged buy-to-let properties – at up to 75% of the property’s value, so the borrower needs at least a 25% deposit.

Energy-efficient discount

The new deals also offer lower rates and fees on the most energy-efficient properties.

When borrowed on properties with Energy Performance Certficate ratings of A-C, the mortgage rates are priced at 5.20% with a 3.00% fee or 5.40% with a 2.00% fee.

On properties that are less energy-efficient (rated EPC D or E) the pay rates are 5.25% with a 3.00% fee or 5.45% with a 2.00% fee.

Moray Hulme, director for mortgage sales at Paragon, said: “We’re starting the new year by replacing four of our five-year fixes with mortgages that have lower headline rates as well as reduced fees. Available at up to 75% LTV, these are competitive options for portfolio landlords who are either purchasing in response to strong tenant demand or remortgaging and looking for some certainty.”

Increased SVR

Paragon has also increased its Standard Variable Rate from 7.85% to 8.35% to reflect the recent rise in the base rate of interest by the Bank of England.