Paragon Bank

Paragon cuts rates and launches extra-large loan offering

Paragon Bank has reduced rates across its BTL portfolio range and has introduced two new extra-large loan products that come with a lower rate, but larger flat product fee.

The lender has changed the rates for its two- and five-year fixed-rate mortgages, designed for purchasing or remortgaging single self-contained (SSC) properties.

The SSC mortgages are available at 70% and 75% LTV for portfolio landlords who manage lettings business in their personal names or through limited companies.

At 70% LTV, rates start from 2.95% on the two-year fixed-rate product and 3.34% when borrowed over five years, while the 75% LTV SSC mortgages start from 3.20% when fixed over two years, increasing to between 3.30% and 3.65% for five.   

They all come with free mortgage valuations, with some also benefitting from £750 cashback.

Paragon Bank’s new extra-large loan products are offered at 70% LTV on maximum loans of £1m or 65% LTV for £2m, with initial rates of 3.25% fixed for five years.

They are available for SSC, HMO and MUB properties and include a flat £10,000 product fee, free valuations, £750 cashback and are subject to £299 application fees.

For both the new extra-large loan products and the revised SSC mortgages, ERCs are set at 2% on loans borrowed over two years. 

The five-year products are subject to ERCs of 5% in years one and two, 4% in years three and four and 3% in year five.

Moray Hulme, director for mortgage sales at Paragon Bank (pictured above), said: “We’re excited to announce reductions across our core product offering because we feel they offer fantastic value for purchasing or remortgaging SSCs, which we know are key investments for many portfolio landlords.

“After engaging with brokers, we know that a flat fee is attractive for these particularly high value purchases and remortgaging.

“While the product fee may seem high at first glance, it actually presents fantastic value for portfolio landlords who are financing properties up to a value of £2m.”

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