Paragon Bank has cut interest rates on its buy-to-let (BTL) mortgage offering by 20 basis points.
The changes apply to both two and five year fixed rate products and the range now starts at 3.55%, with purchase and remortgage options up to 75% Loan-to-Value (LTV).
Landlords can choose from a wide range of rate structures including zero, 3%, 4%, 5% and a flat rate of £3,995, allowing them to tailor products to their individual priorities.
With an LTV of up to 75%, two-year fixed interest rates now start from 3.55% on Paragon’s green mortgage range, which is available on properties with an EPC rating of AC for Individual Standalone Properties (SSC).
For homes with lower energy efficiency, rates are priced 5 basis points higher.
Within the fixed five-year range, rates at 75% LTV now start from 4.75% on green products, again for SSC properties, where the same EPC criteria and price differentials apply.
Paragon has also reduced rates on fixed products for multi-occupancy houses (HMOs) and multi-unit blocks (MUBs), which are priced 15 basis points higher than comparable green EPC SSC products.
All products are available to individual landlords and companies in England, Scotland and Wales.
Paragon sofa head of mortgage sales Jason Wilde says: “Landlords are navigating a market that continues to be defined by political and economic uncertainty. In this environment, we are seeing many opt for higher rate products to ensure a lower overall rate.”
“However, that won’t be the right approach for everyone. By reducing rates across the range and maintaining a wide range of reimbursement options, we are giving landlords the flexibility to choose products that best suit their own circumstances and portfolio strategy.”
Elsewhere, LendInvest has cut all its two- and five-year fixed rate BTL products by as much as 10 basis points.
The lender’s lowest rates now start at 3.84%.
The rate reductions are available for new contracts, product transfers and bridge financing.
Paula Mercer, sales director at LendInvest, said: “We are pleased to be able to reduce our rates for our agents and clients by 10 basis points, which will undoubtedly provide some relief in the current UK property market.”