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Paragon Bank launches 4.69% five-year fixed BTL deal – lowest rate in over 12 months

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  • Five-year fixed-rate buy-to-let mortgage rates starting at 4.69%, available at 70% LTV
  • Paragon pioneers zero ERC during first year of product
  • Nil fee five-year option also launched at 6.30%

Paragon Bank has launched a 4.69% five-year fixed-rate buy-to-let mortgage, its lowest rate for over 12 months, as part of a wider reduction in five-year fixed-rate pricing.

The rate is available for single self-contained properties with Energy Performance Certificate (EPC) Ratings of A to C, up to 70% loan-to-value (LTV). The rate increases to 4.74% on homes with EPC ratings of D or E and 4.94% when financing Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUBs).

Paragon has also pioneered an industry first by introducing zero Early Repayment Charges (ERCs) 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 Interest Coverage Ratio (ICR) is calculated at 5.5%.

To further bolster the range and expand options for landlords, Paragon has also launched a nil product fee five-year option, starting at 6.30% for single self-contained properties at 65% LTV, with the ICR set at pay rate.  

Paragon last week reduced its broader range of five-year, 5% fee buy-to-let products by 30bps. These products also benefit from lower ERCs of 2% in year one, 4% in years two, three and four, and 3% in year five. 

These products include a free valuation and are available for portfolio landlords - those with four or more buy-to-let mortgaged properties - applying as individuals or within limited company structures in England, Scotland and Wales.

Louisa Sedgwick, Mortgages Commercial Director at Paragon Bank, said: “We’re excited to launch our new five-year fixes, especially because we know that the new 4.69% rate is extremely competitive and the cheapest five year product that we’ve launched since August last year. We’re also pleased to bring an industry first through zero ERCs in the first year of the product to add an element of flexibility to the certainty of fixing at a market-leading rate.

“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.”

For more information, including Annual Percentage Rates of Change (APRC) and Early Redemption Charges, please visit the Paragon website here.

For media enquiries contact:

Michael Clarke
Head of Media Relations
Paragon Bank

Notes to editors:

Paragon lends to private individuals and limited companies and provides mortgages suitable for single, self-contained properties, as well as HMOs and multi-unit blocks. Paragon can accommodate higher aggregate lending limits and more complex letting arrangements including local authority leases and corporate leases along with standard ASTs.

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.