Paragon Bank has expanded its buy-to-let mortgages by adding four limited edition and four switch products to its range.
The lender says the four limited edition loans are available to portfolio landlords – those with four or more mortgaged properties – purchasing or remortgaging single self-contained properties.
Its five-year fixes start at 2.67% on a 50% loan-to-value mortgage and 2.77% at 60% LTV, each increasing by 10 basis points for homes with an energy performance certificate rating at D and E.
The bank adds that for portfolio and non-portfolio landlords looking to switch to a new mortgage, it has launched four 75% LTV products.
Portfolio landlords are offered loans for houses in multiple occupation, multi-unit blocks and single self-contained properties. The initial rate is 3.00% when fixed over two years, rising to 3.08% over a five-year term.
Non-portfolio landlords with a single self-contained property can choose between two-year and five-year fixed-rate products, with rates set at 3.00% and 3.08%, respectively.
Paragon Bank director for mortgage sales Moray Hulme says: “Since the end of lockdown, we’ve seen an increasing population of landlords who do not wish to leverage their properties as much as they may have done previously.
“As a responsible lender, we have launched some 50% and 60% LTV products to cater for this market and reward this prudent approach.
“In addition, we made a commitment to keep our switch products in line with our core range and so this is an extension of that promise, matching the remortgage only products we launched last week.”
The lender adds that all four limited edition products do not carry application fees and come with free valuations and £750 cashback. They include an interest coverage ratio of 4.00%.
Switch products incur no transfer fees. Interest coverage ratio is set at 4.00% on five-year loans and 5.50% on two-year products.
The bank’s five-year fixed-rate products carry early repayment charges of 5% in years one and two, 4% during years three and four and 3% for year five. Early repayment charges change to 3% in years one and two, on two-year fixed-rate loans.
