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Paragon Bank reduces buy-to-let two-year fixed rates by 45bps

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  • Rates starting at 4.85%
  • Two-year terms, available at up to 70% loan-to-value
  • Available for single self-contained properties (SSC), houses in multiple occupation (HMO) and multi-unit blocks (MUB)

Paragon Bank has reduced its core two-year fixed rate buy-to-let mortgages by 45bps, with rates now starting at 4.85%.

Rates on the two-year fixes are priced at 4.85% for single self-contained properties with EPC ratings of A-C and 4.90% where the EPC is rated D or E. Interest coverage ratios (ICR) are calculated at 6.85% and 6.90% respectively.

Paragon is also offering a two-year fixed rate buy-to-let mortgage for houses in multiple occupation (HMO) and multi-unit blocks (MUB), with interest charged at 5.10% and ICR calculated at 7.10%.

The products incur a 5% fee and are available to portfolio landlords at up to 70% loan-to-value. The mortgages are suitable for landlords applying as individuals or through limited company structures in England, Scotland and Wales.

Louisa Sedgwick, Commercial Director at Paragon Bank, said: “Our most recent rate reduction sees us quickly respond to the current stability of the swaps market and take 45bps off our core two-year buy-to-let fixed rate, offering our customers some very competitively priced products. These should appeal to borrowers who would like the certainty of a fixed rate product, but over a shorter two-year period.

“While five-year fixes remain popular, we have seen demand grow for two-year options. This could be driven by more landlords choosing to reassess the market in two years’ time, with the recent easing of inflation increasing confidence that we are nearing the current cycle of base rate rises and the expectation that this will play through to mortgage rates during the period.”

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

For media enquiries contact:

Jordan Lott
Media Relations Manager
[email protected] 

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.