Paragon Bank has announced a reduction on a selection of its five-year fixed-rate buy-to-let mortgages. This adjustment reflects a recent cooling in swap rates and aims to provide landlords with more competitive borrowing options.
What Changes Have Been Made to Buy-to-Let Rates?
The updated range from Paragon Bank includes products with various loan-to-value (LTV) ratios. The starting rates for these products now include options for green mortgages, which apply to properties with specific EPC ratings. Additionally, there are options available for Houses in Multiple Occupation (HMOs) and Multi-Unit Blocks (MUBs). Landlords can choose from various fee structures, including nil-fee, percentage-fee, and fixed-fee options, with selected products offering cashback.
Who Will Benefit from These Rate Cuts?
This rate reduction primarily benefits landlords looking to finance their buy-to-let investments. With the introduction of competitive rates, landlords can potentially reduce their borrowing costs, making property investment more attractive. Paragon’s tailored proposition also accommodates applications that fall outside standard lending criteria, widening access for a broader range of investors.
What This Means for Landlords
Frequently asked questions
What are the new rates for Paragon’s buy-to-let mortgages?
The new rates include options for green mortgages on properties with specific EPC ratings, as well as options for HMOs and MUBs.
How can landlords take advantage of these rate cuts?
Landlords can benefit by refinancing existing mortgages or securing new loans at lower rates, potentially reducing overall borrowing costs and improving investment returns.