Paragon Bank, the specialist lender, has cut rates in its buy-to-let range, on two and five-year fixed rate mortgages. These products are designed for purchasing or remortgaging single self-contained (SSC) properties, for portfolio landlords who manage lettings business in their personal names or through limited companies.
These SSC mortgages are available at 70% and 75% LTV, they come with free mortgage valuations and some have the added advantage of £750 cashback.
Rates start from 2.95% on the two-year fixed rate at 70% LTV and 3.34% on the five-year fixed rate. At 75% LTV, rates start at 3.20% on the two-year fixed rate increasing to between 3.30% and 3.65% for the five-year fixed rate.
The lender has also introduced extra-large loan products which are available at 70% LTV on maximum loans of £1m, or 65% LTV for £2m, with initial rates of 3.25% fixed for five years. These include a flat product fee, free valuations, £750 cashback and are subject to £299 application fees. They are available for SSC, HMO and MUB properties.
ERCs are set at 2% on loans borrowed over two years for both the revised SSC mortgages and the extra-large loan products.
For the five-year products, ERCs are at 5% for years one and two, followed by 4% in years three and four and then 3% in year five.
Moray Hulme, director for mortgage sales at Paragon Bank, said: “We’re excited to announce reductions across our core product offering because we feel they offer fantastic value for purchasing or remortgaging SSCs, which we know are key investments for many portfolio landlords.
“After engaging with brokers, we know that a flat fee is attractive for these particularly high value purchases and remortgaging.
“While the product fee may seem high at first glance, it actually presents fantastic value for portfolio landlords who are financing properties up to a value of £2m.”
Original article featured here…
Paragon recently released its latest survey results, showing the percentage of mortgage brokers anticipating higher levels of buy-to-let business over the coming year is at a high not seen since 2014.