Paragon Bank has announced a 4.69 per cent five-year fixed-rate buy to let mortgage, marking the lender’s lowest rate for this type of mortgage in over 12 months. 

The new product is part of a broader reduction in Paragon’s five-year fixed-rate offerings.

Available at a 70 per cent LTV, this rate is applicable for single self-contained properties with an EPC of A to C. Homes rated D or E will have a 4.74 per cent rate, while HMO and Multi-Unit Blocks are subject to a 4.94 per cent rate.

In what it calls an industry-first move, Paragon is also offering zero Early Repayment Charges during the first year of the product’s term. 

A 3.0 per cent flat fee applies for early repayment during the remainder of the term. The new mortgage comes with a 7.0 per cent product fee, and the Interest Coverage Ratio is calculated at 5.5 per cent.

Paragon has additionally introduced a nil fee five-year fixed-rate mortgage starting at 6.3 per cent for single self-contained properties at 65 per cent LTV, with the ICR set at the pay rate.

Louisa Sedgwick, commercial director at Paragon Bank, says: “We’re excited to launch our new five-year fixes, especially because we know that the new 4.69 per cent rate is extremely competitive and the cheapest five-year product that we’ve launched since August last year.”