- Refreshed product range for portfolio and non-portfolio landlords with lower rates across 14 products
- New products suitable for individual and limited company landlords
- Range comes with mix of low fees, starting at 0.25%, or zero product fees, free mortgage valuations and cash back offers
Paragon, the specialist bank and buy-to-let lender, has kicked-off 2020 with a refreshed range of mortgage products for portfolio and non-portfolio landlords.
The changes include lower rates on 14 different products across our range of mortgages up to 80% loan-to-value.
The range for portfolio landlords - those with four or more mortgaged properties - includes fixed rates starting at 2.75% for those looking to purchase or remortgage single, self-contained units (SSCs) and 2.85% for landlords seeking finance for houses in multiple occupation (HMOs) and multi-unit blocks (MBUs). Discount variable rates start at 2.65% for SSCs and 2.80% for HMOs and MUBs.
Highlights for portfolio landlords include a five-year and two-year fixed rate at 3.19% and 2.75% respectively. Both rates come with free valuation and £350 cashback.
Fixed and discount variable rates for non-portfolio landlords start at 3.45% and 2.65% on SSCs.
Landlords can choose from a range of two and five-year term products with a mix of low, starting at 0.25%, or zero product fees, free mortgage valuations and cash back offers. All products are available to individual landlords, as well as those operating in limited companies and limited liability partnerships and include an interest coverage ratio (ICR) starting at 4.00%.
The increase in portfolio and complex buy-to-let business seen over the past two years is set to continue in 2020, according to Paragon. Complex completions increased from 79% to 89% of new business in 2019, reflecting the long-standing expertise that Paragon has in this specialised segment of the buy-to-let market.
Moray Hulme, Director of Mortgage Sales at Paragon, said:
"In recent years, landlords have had to be more strategic in their approach than ever before and the buy-to-let market has seen a significant increase in portfolio and complex business.
This new product range caters for the professional landlord with competitive pricing, low or zero product fees, free valuations and cash back offers.
We’re excited to build on the momentum of a strong 2019, where we introduced a new Intermediary Portal and increased our proportion of lending to the professional landlord community, with this new range, including lower rates on 14 products."
Portfolio Landlord Product Highlights
Single self-contained units (SSC) Fixed
| LTV |
Product type and term |
Initial rate |
Product fee |
Product criteria |
| 75% |
2 year fixed |
2.75% |
1.00% |
No app or valuation fee
£350 cashback |
| 75% |
2 year fixed |
3.30% |
Nil |
No app or valuation fee |
| 75% |
5 year fixed |
3.19% |
2.00% |
Free valuation
£350 cashback |
| 75% |
5 year fixed |
3.55% |
£1,250 |
Free valuation
£350 cashback
Max loan: £500k |
| 75% |
5 year fixed |
3.65% |
Nil |
No app or valuation fee |
| 80% |
2 year fixed |
3.45% |
0.50% |
No app or valuation fee
£350 cashback |
| 80% |
5 year fixed |
3.75% |
0.50% |
Free valuation
£350 cashback |
Single self-contained units (SSC) Discounted Variable Rate
| LTV |
Product type and term |
Initial rate |
Product fee |
Product criteria |
| 75% |
2 year discount |
2.65%
(Paragon SVR less 2.95%) |
1.75% |
No app or valuation fee |
| 75% |
5 year discount |
2.95%
(Paragon SVR less 2.65%) |
2.00% |
No app or valuation fee |
HMOs/Multi-unit blocks Discounted Variable Rate
| LTV
| Product type and term
| Initial rate
| Product fee
| Product criteria
|
| 75% |
2 year discount |
2.80%
(Paragon SVR less 2.80%) |
1.75% |
No app or valuation fee |
| 75% |
5 year discount |
3.10%
(Paragon SVR less 2.50%) |
2.00% |
No app or valuation fee |
Non-portfolio Landlord Product Highlights
Single self-contained units (SSC) Fixed
| LTV |
Product type and term |
Initial rate |
Product fee |
Product criteria |
| 75% |
5 year fixed |
3.65% |
0.50% |
No app or valuation fee
£350 cashback |
| 75% |
5 year fixed |
3.55% |
Nil |
No app or valuation fee |
| 80% |
5 year fixed |
3.65% |
0.50% |
No app or valuation fee
£350 cashback |
| 80% |
5 year fixed |
3.70% |
Nil |
No app or valuation fee
£350 cashback |
Single self-contained units (SSC) Discounted Variable Rate
| LTV |
Product type and term |
Initial rate |
Product fee |
Product criteria |
| 75% |
2 year discount |
2.80%
(Paragon SVR less 2.80%) |
1.75% |
No app or valuation fee |
| 75% |
5 year discount |
3.10%
(Paragon SVR less 2.50%) |
2.00% |
No app or valuation fee |