Paragon Bank cuts fixed-rate buy-to-let mortgage rates by 15bps, with pricing starting from 3.40%

Paragon Bank has reduced rates by 15 basis points across its fixed-rate buy-to-let mortgage products in both its Core and Tailored propositions, with pricing now starting from 3.40%.

The reductions apply to two-year and five-year fixed-rate mortgages for purchasing or remortgaging single self-contained properties, Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUBs). The products are available through Paragon’s Core range, with selected options also offered through its Tailored proposition.

At 75% loan-to-value, two-year fixed rates start from 3.40% on Paragon’s Green Mortgage range for single self-contained properties with EPC ratings of A to C. Equivalent products for properties with EPC ratings of D or E start from 3.45%. Both options carry a 5% product fee and include £500 cashback.

For landlords financing HMOs or MUBs, two-year fixed rates at 75% LTV begin at 3.55%, also with a 5% product fee and £500 cashback. Alternative products are available with 3% or nil product fees, with rates starting from 4.55% and 6.05% respectively.

Five-year fixed rates at 75% LTV start from 4.80% on Green Mortgage products, with equivalent products for properties rated EPC D or E available from 4.85%. These products carry a 5% fee and include £1,000 cashback. Five-year fixed rates for HMOs and MUBs start from 4.95%, also with a 5% fee and £1,000 cashback.

The wider range includes nil-fee, percentage-fee and fixed-fee options across products at 60%, 70%, 75% and 80% LTV, giving brokers a choice of fee structures when assessing the overall cost of borrowing for landlord clients.

All products include a free mortgage valuation. There is no application fee on mortgages for single self-contained properties, while products for HMOs and multi-unit blocks carry a £299 application fee.

Products available through Paragon’s Tailored proposition have also been reduced, supporting buy-to-let applications that fall outside standard lending criteria. At 75% LTV, Tailored two-year fixed rates start from 5.15% for Green Mortgage-eligible single self-contained properties and 5.30% for HMOs and MUBs. Five-year fixed rates begin at 5.55% and 5.70% respectively, with the five-year products including £1,000 cashback.

James Harrison, Mortgages Product Manager at Paragon Bank, said: “These reductions provide landlords with lower pricing across a broad selection of two-year and five-year fixed products, covering both standard and more specialist property types.

“The range has been structured to provide a choice of rates and product fee arrangements, including nil-fee, percentage-fee and fixed-fee mortgages. Free valuations across the range, alongside no application fee on products for single self-contained properties, also enables brokers to consider the upfront costs as well as the rate and fee structure when discussing requirements with landlord clients.”

For more information, including Annual Percentage Rates of Charge (APRC), Interest Coverage Ratios (ICR) and Early Redemption Charges (ERC), please visit the Paragon website here.