Paragon Bank has refreshed its buy-to-let (BTL) mortgage offerings, now available with a maximum loan-to-value (LTV) ratio of 80%. This change is significant for landlords and property investors, as it enhances financing options for both new purchases and remortgages.
What are the new rates and terms?
Paragon’s revised BTL rates start at 3.55%, with products available at various LTV tiers: 60%, 70%, 75%, and 80%. Notably, for landlords interested in properties with high energy performance certificate (EPC) ratings of A-C, two-year fixed rates begin at 3.55% for green mortgage products. For properties with lower EPC ratings, rates start at 3.60%. For those seeking longer-term stability, five-year fixed rates commence at 4.95% for green products and 5% for lower-rated properties.
Who can benefit from these changes?
The updated offerings are available to both individual and limited company landlords across England, Scotland, and Wales. This flexibility allows a broader range of investors to take advantage of competitive rates, whether they are purchasing new properties or refinancing existing loans. Additionally, landlords financing houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) will find two-year fixed rates starting at 3.7% at 75% LTV, with five-year rates beginning at 5.1%.
What this means for landlords in the mortgage market
For landlords, the refreshed BTL range presents an opportunity to secure more favourable financing conditions, particularly for energy-efficient properties. With the mortgage market remaining sensitive to swap rate fluctuations, Paragon’s swift adjustments to their pricing structure may provide landlords with timely access to competitive products. Investors should monitor these developments closely, as they may influence overall market dynamics.
Frequently asked questions
What is the maximum LTV offered by Paragon?
Paragon now offers buy-to-let mortgages with a maximum loan-to-value ratio of 80%.
What are the starting rates for Paragon’s buy-to-let products?
Starting rates for Paragon’s refreshed buy-to-let range begin at 3.55% for two-year fixed rates on green mortgage products.