Paragon Bank, the specialist lender, has unveiled new pricing for its switch and further advance products, available for both portfolio and non-portfolio landlords.
This news comes after the lender forecast a boom of remortgaging activity in the buy-to-let sector this year. The catalyst behind this is the new underwriting standards that were brought in by the PRA in 2017.
The 70% LTV fixed rate switch products now start at 2.95%, at 75% LTV from 3.10%, and at 80% LTV from 3.85%.
For further advance fixed rates, the 70% LTV product now starts at 3.40%, 75% LTV from 3.50% and at 80% LTV from 3.95%.
The range is suitable for financing single self-contained properties, HMOs and also MUBs.
Paragon director for mortgage sales Moray Hulme says: “The Prudential Regulation Authority’s introduction of new underwriting standards in 2017 led to a substantial increase in the number of five-year fixed rate mortgages written between December 2016 and January 2018.
“We’ve launched a new range of keenly priced switch products to cater to the wave of landlords who will have loans reaching maturity in 2022.
“In addition, we know that there is a growing number of landlords who are looking to make their properties more energy efficient or are thinking about expanding their portfolios, perhaps taking on somewhere that requires some work to bring up to a good standard.
“Our further advance products are perfect in these types of scenarios, so we’re pleased to be able to support investment in improving the quality and quantity of private rented sector stock.”
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