Paragon Bank has launched a pair of two-year fixed-rate sub-4% landlord loans, which it says are its lowest buy-to-let prices for over 18 months.  

The specialist lender offers 70% LTV two-year fixes starting at 3.94% for A to C energy performance certificate-rated single self-contained properties and 3.99% loans for single self-contained properties rated at D to E.   

For houses in multiple occupation, deals start from 4.19%. These three deals come with a 5% fee and are available to portfolio landlords.  

The lender also offers 75% LTV two-year fixes, with a 3% fee reduced by 35 basis points, starting at 4.85% for green properties, 4.90% for standard properties and 5.10% for houses in multiple occupation and multi-unit blocks. These products are also available to portfolio landlords.  

It also has 75% LTV two-year fixes, with a 3% fee, starting at 4.85% for green properties and 4.90% for standard properties. Available for non-portfolio landlords.  

The firm adds that interest coverage ratios are calculated at two percentage points above initial rates.   

Its mortgages are available to landlords applying through limited company structures or in personal name in England, Scotland and Wales.  

Paragon Bank commercial director Louisa Sedgwick says: “Although there is still work to do to stabilise the economy, things do seem to be heading in the right direction and the general feeling is that rates are coming down.   

“This means that we’re seeing landlords seek the stability of a fixed rate but over the shorter two-year term so they can reassess the market in a couple of years’ time.  

“With it being Valentine’s Day, we wanted to show some love to our landlord customers so we’re offering our lowest rate on two-year fixes for new customers in over 18 months and have taken 35bps off our 3% fee two-year product too.”