Paragon Bank has lowered rates on its core range of buy-to-let (BTL) mortgages, taking 15bps off 10 products.

In addition, the bank has launched six five-year fixed rate mortgages with no fee and 5% fee options.

These include three 5% fee five-year fixed rate mortgages with rates starting at 4.60% for the purchase or remortgage of properties with energy performance certificate (EPC) ratings of A to C.

This increases to 4.65% on Paragon’s standard product, for homes with EPC ratings of D or E, and 4.80% for houses in multiple occupation (HMO) or multi-unit blocks (MUB).

Rates on the corresponding nil fee products are set at 5.65% for the EPC A to C product, 5.70% on the standard mortgage and 5.90% when purchasing or remortgaging HMOs and MUBs.

These products are available at up to 65% loan-to-value (LTV) and are subject to a £750 application fee, with £750 cashback on completion.

Interest coverage ratios are calculated at 5.00% for the 5% fee products and in line with initial rates on the zero fee options.

Paragon Bank mortgages commercial director Louisa Sedgwick says: : “We’re reducing rates across our core range, as well as introducing some flexible new five-year options to offer landlords more choice.”

“In addition to this rate cut, on products where a £750 application fee is charged, rates are lower compared to our core range. Customers will receive £750 cashback on completion, offering competitive pricing for landlords who are confident that their application will go through.”