Paragon Bank has launched a limited-edition discounted rate to its range of buy-to-let mortgages.

The discounted variable deal offers portfolio landlords the chance to swap to a fixed rate without penalty.

The two-year product is available up to 75% of the property’s value and is priced at 4.73%, which is Paragon’s standard variable rate less 4.12%.

It is available for single self-contained properties, houses in multiple occupation and multi-unit blocks.

Switch to a fix

The key benefit of the latest addition to the specialist lender’s range is the ability to switch to a fixed rate without penalty.

At any time during the discounted product term, a landlord can apply to switch to any available Paragon product switch fixed rate without incurring an early repayment charge.

The mortgage is available to borrowers operating through limited companies or as individuals. It comes with a 3% product fee and a free valuation.

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

Richard Rowntree, managing director for mortgages at Paragon Bank, said: “Brokers have told us that a growing number of their clients want to see what happens to rates over the next year or two and we know that many borrowers like the certainty of fixed rate mortgages. With no ERCs for landlords who switch to one of our fixes, this mortgage provides a balance of flexibility and certainty.”