The rate is available for single self-contained properties with energy performance certificate ratings between A and C, up to 70% loan-to-value. This is the firm’s lowest rate since last August. 

It rises to 4.74% on homes with energy performance certificate ratings of D or E and 4.94% when financing houses in multiple occupation and multi-unit blocks. 

The bank has also introduced zero early repayment charges for the first year of the product, with a flat 3% fee for the remainder of the term duration. The product comes with a 7% fee, and the interest coverage ratio is calculated at 5.5%. 

Elsewhere in its BTL range, the bank has launched a nil product fee five-year option, starting at 6.30% for single self-contained properties at 65% LTV, with the interest coverage ratio set at pay rate.    

These loans include a free valuation and are available for portfolio landlords — those with four or more BTL mortgaged properties — for individuals or limited companies in England, Scotland and Wales. 

Paragon Bank commercial director Louisa Sedgwick says: “Brokers have told us that they’re trying different approaches to find solutions for their clients and that one of the best ways we can support landlords in the current dynamic market is by offering choice, including a range of rate and fee options, and we feel that our latest products certainly do that.”