Paragon Bank is the latest to reduce mortgage rates for landlords.

It’s cut rates across 22 buy-to-let mortgage products, with fixed deals now starting at 4.59 per cent.

The specialist lender says the reductions form part of a product refresh that has seen rates cut across a range of loan-to-value bands for both portfolio – those with four or more buy-to-let mortgaged properties – and non-portfolio landlords.

Highlights include a reduction on Paragon’s 70 per cent LTV two-year fixed rate product, now priced at 4.59 per cent.

This rate is available to portfolio landlords for the purchase or remortgage of single self-contained homes with EPC ratings of A-C. Rates increase to 4.64 per cent on properties banded EPC D or E and 4.84 per cent on HMOs and MUBs. 

The product fee on the two-year fixes is set at 5.0 per cent and interest coverage ratios (are calculated at two percentage points above initial rates. 

Louisa Sedgwick, Commercial Director at Paragon Bank, says: “In this market, landlords want options, so we are pleased to offer these competitive rates with a mix of terms, LTVs and fees.

“With a range of different indicators suggesting that the UK economic outlook is strengthening, the stabilisation of swap rates has continued and, as a result, we’ve been able to again reduce rates on some of our key products.”

In the mainstream mortgage market dominated by High Street bank lenders, more cuts are expected on top of those already announced.

Lloyds Banking Group, Barclays, Nationwide and Santander have either cut borrowing rates or indicated they will within days.

Nicholas Mendes, a mortgage manager at the broker John Charcol, says HSBC had “laid down the gauntlet and shown they mean business” with their latest announcement.

“This is their second rate reduction in a week, along with criteria changes which extend terms to 40 years” he adds.