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

The lender offers different interest rates depending on the energy-efficiency of the property being mortgaged.

Rates start at 4.90% when the landlord is purchasing or remortgaging properties with an Energy Performance Certificate (EPC) rating of A-C.

If the property is EPC D or E rated the rate rises to 4.95%.

Both of the five-year fixed rate products incur a 3% fee.

Flat fee options available

Alternatively, the lender has two five-year fixed options with a flat fee of £2,495.

Two further five-year fixed products come with a flat fee of £2,495. The rates are set at 5.25% for EPC rated A-C homes and 5.30% for properties with (EPC) ratings of D or E.

The four products are all offered at up to 75% of the property’s value, with a maximum loan of £4 million and an Interest Coverage Ratio (ICR) calculation rate of 5.50%.

They are available to portfolio landlords – those with four or more buy-to-let mortgaged properties – in England, Scotland and Wales.

The mortgages comes with a free valuation, and are suitable for the purchase or remortgage of single self-contained properties, HMOs and multi-unit blocks.

Moray Hulme, director for mortgage sales at Paragon, said: “The launch of these limited-edition products sees us replace four of our five-year fixes with mortgages that feature lower rates.

“This improves our range of fixed rate products, so is good news for portfolio landlords who want some certainty when remortgaging one of their existing properties or purchasing homes in response to what is now sustained strong tenant demand.”