Paragon Bank has added two new five-year fixed-rate mortgages to its buy-to-let range.

The Solihull-based lender says the maximum loan size for both products is £750,000 up to 75 per cent loan to value, £1m up to 70 per cent LTV and £2m up to 65 per cent loan to value.

The first mortgage has an initial rate of 3.44 per cent and a product fee of 2 per cent, while the second has an initial rate of 3.50 per cent and a 1 per cent product fee.

Both products come with a free mortgage valuation and are available to landlords who are purchasing or remortgaging single self-contained properties in their names or through a limited company.

The announcement from Paragon comes on the morning of chancellor Rishi Sunak’s Budget, where he is widely expected to extend the stamp duty holiday and provide guarantees to lenders who offer higher loan-to-value residential mortgages.

Paragon director of mortgage sales Moray Hulme says: “In response to the current strong demand and ahead of the imminent budget announcement, we have reviewed our product range.”

Hulme adds: “We have decided to offer two products that give landlords who are interested in either purchasing or remortgaging on single self-contained properties a couple of well suited options.”

The firm says early redemption charges of 5 per cent are in place during years one and two, charged at 4 per cent for years three and four and 3 per cent for year five.

Just under half, or 48 per cent of buy-to-let owners said they intended to buy a property in the first quarter of the year, according to a poll by Foundation Home Loans last month.

However, landlords intend to remain active in the market throughout the year, regardless of whether stamp duty relief is withdrawn, according to the survey.

It said 41 per cent of landlords intend to buy in the second quarter, 28 per cent in the third quarter, and 29 per cent in the final three months of 2021. Landlords were able to pick more than one quarter if they were unsure when they might complete, the poll explained.