Paragon Bank has introduced a new range of buy-to-let mortgages with fee-free fixed and discounted rate deals.
The specialist buy-to-let lender has launched its first fee-free two-year fixed rate mortgage in over two years, priced from 6.1%.
It is available for the purchase or remortgage of single self-contained properties with Energy Performance Certificate (EPC) ratings of A-C.
The standard option, for EPC D or E rated properties, is priced at 6.15%, while houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) are 6.35%.
There is no mortgage arrangement fee on the deal, although an application fee of £299 will be charged.
Discount deal
The lender’s new discounted rate mortgage comes with a fee of 1.25% of the mortgage sum (plus a £299 application fee) and is priced from 6.19%.
The mortgage tracks Paragon’s Standard Variable Rate (SVR) minus 3.16% on EPC A-C rated properties and 3.11% on the standard range.
All borrowers taking out Paragon’s discounted and standard SVR products have the option to track to fix.
This means that, at any time during the product term, the landlord can apply to switch to any available Paragon fixed-rate product without incurring an early repayment charge.
James Harrison, mortgage product manager at Paragon Bank, said: “Landlords keep a keen eye on the economy and we know there is an anticipation that rates will continue on their current downward trajectory.
“This makes two-year products more appealing so we’re providing more choice across the term, launching a nil-fee fixed rate option and a discounted variable rate. The latter has a lower fee than our existing 2.50% fee product and is available with track to fix.
“This makes it a great choice for customers who want flexibility, with the option to choose a fixed rate product within the next two years without paying an Early Repayment Charge.”
Both new mortgages are available up to 75% of the property’s value, to individual and limited company landlords.
