Paragon Bank has launched two limited edition buy-to-let 60% Loan-to-Value (LTV) mortgages, with fixed interest rates over two and five year terms.
The new range includes six products for detached houses (SSC) and three products for houses of multiple occupancy (HMOs) and multi-unit blocks (MUBs), with terms of two and five years.
For SSCs, rates start from 4.35% for Paragon’s green mortgage product, available on properties with an EPC rating of AC. This increases by 5 basis points for homes with a lower energy efficiency value.
For landlords financing HMOs or MUBs, rates start at 4.6%.
The products are subject to a product surcharge of 3% or a no-fee option.
They are offered on a limited basis and are available to both personal and limited company landlords.
The SSC products are available with no application fee, while HMO and MUB loans have a £150 application fee. Interest coverage ratios (ICRs) are calculated at the initial interest rate plus two percentage points.
All products are eligible for Paragon’s multi-property proposition, which applies to applications of between four and 99 properties.
This allows landlords to submit one application for multiple properties, with no application fees and reduced legal requirements, with only one legal advice certificate required for the overall application, rather than one per property.
Paragon Bank product manager James Harrison said: “Economic instability fueled by the war in Iran continues to impact funding costs, but we continue to respond to market conditions. With swaps becoming more stable recently and rates having fallen slightly, we can offer landlords more options with this competitively priced, limited edition range.”