Buy to Let

Paragon launches lowest two-year fixed rate in 18 months

Paragon launches lowest two-year fixed rate in 18 months
Christina Hoghton
Written By:
Christina Hoghton

Paragon Bank has introduced a new sub-four per cent mortgage for landlords.

The lender said its new buy-to-let mortgage range includes the lowest two-year fixed-rate it has offered for 18 months.

Rates on the two-year fixed-rate buy-to-let mortgages start at 3.94 per cent, a reduction on 35 basis points on the lender’s previous equivalent deals.

The mortgage is available to landlords with a 30 per cent deposit or equity stake on a property with an A to C EPC rating.

For properties that have an Energy Performance Certificate rating of D to E the rate rises to 3.99 per cent.

And for HMOs and multi-unit blocks the rate is 4.19 per cent.”

The mortgages come with a five per cent fee.

Smaller deposit deals

For borrowers with 25 per cent upfront, the rate for A to C rated properties is 4.85 per cent, 4.9 per cent for D to E rated and 5.1 per cent for HMOs and multi-unit blocks. These mortgages comes with a three per cent fee.

The specialist lender’s mortgages are available to landlords applying through limited company structures or in personal name in England, Scotland and Wales.

Louisa Sedgwick, commercial director at Paragon Bank, said: “Although there is still work to do to stabilise the economy, things do seem to be heading in the right direction and the general feeling is that rates are coming down.

“This means that we’re seeing landlords seek the stability of a fixed rate but over the shorter two-year term so they can reassess the market in a couple of years’ time.