Paragon Bank has extended the window in which buy-to-let mortgage customers can lock in a competitive remortgage rate from three months to six months.
Paragon is amongst the first specialist lenders to offer borrowers the chance to remortgage up to six months ahead of their current buy-to-let product reaching maturity.
Brokers are offered a procuration fee of 0.30% for every product switch that they introduce.
With rates starting at 2.95%, Paragon has a range of two-year and five-year fixed-rate products aimed at those looking to switch to a new loan.
Products are available for non-portfolio landlords wishing to finance single self-contained units (SSC) and for portfolio landlords - those with four or more mortgaged properties – borrowing on houses in multiple occupation (HMO), multi-unit blocks (MUB) and those operating as limited companies or limited liability partnerships.
Moray Hulme, Director for Mortgage Sales said: “In 2017, changes to PRA underwriting standards led to a significant increase in the number of buy-to-let mortgages being written with rates fixed for five years. We’ve already seen how this has started to drive remortgage business and we foresee this as continuing throughout 2022.
“With the Bank of England recently raising base rate by 0.25% to 0.50%, and further increases expected to come throughout the duration of the year, I expect there will be a number of borrowers who will be keen to switch to a new product sooner rather than later, locking in one of the competitive deals currently available.
“We’ve listened to the market and know that extending the window in which borrowers can switch to a new product by three months will be a welcome step, helping to provide landlords with some security amidst the current economic change.”
For further information contact:
Jordan Lott
Media Relations Manager
Paragon
Tel: 0121 712 2319
www.paragonbank.co.uk
Notes to editors:
Paragon lends to private individuals and limited companies and has 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 introduced its first product aimed at the professional property investor in 1995 and is a member of UK Finance, the Intermediary Mortgage Lenders Association (IMLA), National Landlords Association (NLA) and the Association of Residential Letting Agents (ARLA).
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 £12 billion of assets under management and manages over 450,000 customer accounts.
Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.