Paragon Bank has launched new five-year fixed-rate buy-to-let mortgages with nil product fees.
Rates start at 5.80 per cent and there is £750 cashback on selected products.
Available at up to 70 per cent loan-to-value rates start at 5.80 per cent on Paragon’s green mortgage that is suitable for the purchase or remortgage of single self-contained properties with EPC rating of A, B or C. This increases on properties with lower EPC ratings.
For landlords purchasing or remortgaging HMOs and Multi-Unit Blocks, rates start at 6.05 per cent.
Interest coverage ratios are calculated in line with initial rates. All products are available to landlords applying through limited company structures or in personal name in England, Scotland and Wales.
Louisa Sedgwick, commercial director at Paragon Bank, says: “While we know that initial rates starting at 5.80% won’t work for all borrowers, charging no product fees can make the mortgages we’ve launched today really appealing for others, particularly those buying or remortgaging higher value properties. We’ve also introduced £750 cashback on selected products which could be used towards legal costs, for example.
“We are delighted to see swap rates continuing to fall this week, highlighting how an element of stability is returning to the mortgage market, enabling us to adjust our range making our products more attractive to landlords.”
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I am a Limited Company landlord and have a Paragon mortgage with interest up 240% (not a typo) - I have allowed it to move to the SVR because the deals on offer are very poor and something is guaranteed to break eventually in this sham of an economy (the inverted yield curve to name just one). By moving over to this "fee-free" offer, it's an improvement. But I've just logged in to my Paragon Portal - and still interest is up 70%. No thank you!
Similar business/portfolio lenders have a much more favourable SVR (we are talking over TWO PERCENT cheaper - a huge difference). I always liked Paragon the most (I have most mortgages with them) - until this renewal arrived a few months ago - and their greed has shone through (9.6% SVR with a 0.75% discount).
Therefore I'll be paying down Paragon mortgages over my other lender mortgages and/or re-mortgaging elsewhere next year when the BOE base rate will conveniently start to reduce months before the general election (but probably sooner because unemployment hikes are definitely on the cards. I know almost every trade, and industry pretty well, and the data we are receiving - such as jobs numbers - is nonsense and is secretly adjusted a few weeks later - please DYOR if you are struggling to believe this).
Please can you tell me which lender you have used for your HMO's?
thank you
I agree with Katy.
I have 3 mortgages with Paragon.
They have been very good to deal with for new mortgages. They will deal direct with the customer and don't insist on a broker messing things up. Their customer service is excellent.
Last year their rates were extremely attractive.
However, currently their product switch rates are horrendous. I've just shifted £213000 of borrowing from one of the Paragon mortgages elsewhere onto other houses to get much lower rates. Two remortgages and a further advance at between 4.28% and 5.39% instead of the Paragon switch rate of 6.39%. That's an annual saving of nearly £3000.
The other advantage of moving the borrowing is that the other lenders will allow 10% of the balance to be paid off each year without penalty whereas Paragon won't.
Hi Jo,
Which lender have you used instead of Paragon, most of my portfolio is with Paragon, and your right the deals for remortgaging aren't great.
Thank you
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