The lender has reduced its five-year fixed rates for landlords by up to 70 basis points.
Paragon has also cut its five-year reference rate, from 5.5 per cent to five per cent. This affects the lender’s Interest Coverage Ratios and effectively boosts the borrowing power of some landlords.
The lender has made other criteria changes to its rules on minimum experience and maximum loan term criteria.
What’s new?
Rates on Paragon’s five-year fix, which comes with a five per cent fee, have been reduced from 5.2 per cent to 4.5 per cent for the purchase or remortgage of single self-contained properties.
For energy efficient homes with EPC rating of A-C, the rate is five basis points lower at 4.45 per cent while the rate for Houses in Multiple Occupation (HMOs) and Multi-unit blocks (MUBs) is 4.7 per cent.
Paragon has also extended its maximum loan term from 25 to 35 years, and has cut the amount of experience buy-to-let landlords need for HMO & MUB applications, down from a minimum of three years to two.
Further cuts
Other rate cuts include a 55 basis point reduction, from 5.94 per cent to 5.39, per cent on a fee-fee five-year fixed mortgage with £750 cashback.
Paragon’s EPC C and above loan is again five basis points lower at 5.34 per cent and increases to 5.59 per cent on HMOs and MUBs.
These products are available at up to 75% loan-to-value (LTV) for landlords applying through limited company structures or in personal name in England, Scotland and Wales.
Louisa Sedgwick, commercial director at Paragon Bank, said: “It’s great to get the year off to a positive start by taking up to 70 basis points off our 75 per cent LTV five-year fixed-rate mortgages. With a mix of five per cent and nil fee options, some with £750 cashback, we’re aiming to offer products that work for more landlords.”
