Paragon reduces rates and launches extra-large loan products
Paragon Bank is reducing rates across its buy-to-let portfolio range, as well as launching two new extra-large loan products that come with a lower rate but larger flat product fee.
The specialist lender is offering two and 5-year fixed rate mortgages for purchasing or remortgaging single self-contained (SSC) properties.
The products are available to portfolio landlords who manage lettings business in their personal names or through their limited companies.
The SSC mortgages are available at 70% and 75% loan-to-value (LTV) and all come with free mortgage valuations, with some also benefitting from £750 cashback.
At 70% LTV, rates start at 2.95% on the 2-year fixed rate product and 3.34% when borrowed over five years.
The reduced 75% LTV SSC mortgages have rates starting at 3.20% when fixed over two years, increasing to between 3.30% and 3.65% for the 5-year fixed rate products.
Moray Hulme (pictured), 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.”
Paragon is also offering two new products that, due to a flat £10,000 product fee, offer a competitive option for portfolio landlords seeking finance for higher value purchases or remortgages.
The extra-large loan product is available for SSC, HMO and MUB. Both products are offered at 70% LTV on maximum loans of £1m or 65% LTV on £2m maximum loans, with initial rates of 3.25% fixed for five years. The mortgages include free valuations, £750 cashback and are subject to £299 application fees.
Hulme added: “Our extra-large loan product has a flat £10,000 product fee. After engaging with brokers, we know that a flat fee is attractive for these particularly high value purchases and remortgaging.
“As one of the leading specialist lenders, we’re well placed to take a different approach to supporting investors in this section of the market and 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.”
Across all of the products mentioned, Early Redemption Charges (ERC) are set at 2% on loans borrowed over two years and the 5-year products are subject to ERC of 5% in years one and two, 4% in years three and four and 5% in year five.