Paragon Bank has launched fee-free two-year fixed rates and discounted standard variable rate products to its range.
The new nil-fee two-year fix starts from 6.1%.
Its discounted SVR product starts at 6.19% with 1.25% fee.
On its nil-fee deal, borrowers can access the lowest rate of 6.1% when buying or remortgaging single self-contained properties with EPC ratings of A-C. For D or E rated properties the rate is 6.15%.
When borrowing for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) the rate increases to 6.35%.
The lender’s new two-year variable rate products track its SVR, which is currently 9.35%, with a discount of 3.16% on EPC A-C rated properties and of 3.11% on the standard range.
The products have a 1.25% fee, with rates starting at 6.19% for the green option, 6.24% on the standard product and 6.44% for HMOs and MUBs.
Borrowers taking the variable rate deals also have the option to track to fix.This means that any time during the product term, a landlord can apply to switch to any available Paragon fixed-rate without paying an early repayment charge.
The deals are available up to 75% LTV and interest cover ratio is calculated at the initial rate plus 2 percentage points.
The products are available across England, Scotland and Wales on individual and limited company buy-to-let.
They come with a free mortgage valuation and a £299 application fee.
Mortgage product manager James Harrison says: “Landlords keep a keen eye on the economy and we know there is an anticipation that rates will continue on their current downward trajectory.
“This makes two-year products more appealing so we’re providing more choice across the term, launching a nil-fee fixed rate option and a discounted variable rate.
“The latter has a lower fee than our existing 2.5% fee product and is available with track to fix.
“This makes it a great choice for customers who want flexibility, with the option to choose a fixed rate product within the next two years without paying an early repayment charge.”
