Paragon refreshes BTL product range

Paragon Bank has enhanced its BTL product range for portfolio and non-portfolio landlords.

The specialist lender is offering a selection of two- and five-year fixed rates for landlords who are purchasing or remortgaging in their personal names or through a limited company.

The changes include lower rates on 10 different products across the range, up to 75% LTV.

For portfolio landlords, Paragon has reduced its two-year fixed rate at 75% LTV to 3.20%, with 1% product fee and £750 cashback, available for HMOs and MUBs.

The five-year fixed rate offering at 75% LTV has also been cut to 3.75%, with £750 cashback and no product fee, available for single self-contained (SSC) properties.

For non-portfolio landlords, the interest rate for the five-year fixed rate product at 70% LTV, available on SSC properties, has been brought down to 2.99%, with the product fee reduced to 1.50%.

The 75% LTV five-year fixed rate product available on SSC properties for non-portfolio landlords has also seen a rate drop to 3.65%, with no product fee and £350 cashback.

On the five-year products, ERCs of 5% are in place during the first two years and then charged at 4% for years three and four and 3% for the fifth year. 

An ERC of 3% is applicable on the two-year mortgages.

Moray Hulme, director of mortgage sales at Paragon (pictured above), said: “The extension of the stamp duty holiday means that we’re likely to see further increased purchase activity over the coming months.

“In addition, we know that a significant number of landlords opted for five-year fixed rate products as a result of the introduction of the 3% stamp duty surcharge in 2016.

“These mortgages are set to mature, so we expect to see an increased focus on remortgage activity too.
“Landlords are adept at responding to the market and we aim to support this by developing products that provide useful and competitive options for those who are modifying their portfolios in line with current conditions.”

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