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Graham Awards


Buy To Let lender offers new green mortgage products to landlords

Buy To Let lender Paragon Bank has added five-year fixed-rate ‘green’ products to its range of BTL mortgages.

Rates start at 4.89 per cent - available on Paragon’s five per cent fee option - suitable for the purchase or remortgaging of single self-contained properties with EPCs of A-C. 

This increases to 4.94 per cent for homes with lower energy efficiency ratings and 5.14 per cent for Houses in Multiple Occupation and Multi-Unit Blocks.


The specialist lender is also offering nil fee options, with £750 cashback available on selected mortgages. These are priced from 5.94 per cent for the ‘green’ SSC product, rising by 5bps for standard energy efficiency and to 6.19 per cent for HMO and MUB.

All of the five-year fixed rate products included in the launch have interest coverage ratios calculated in line with initial rates. They are offered at up to 75 per cent LTV for landlords applying through limited company structures or in personal name in England, Scotland and Wales.

Louisa Sedgwick, Commercial Director at Paragon Bank, says: “Speaking to both brokers and landlords, we know that many are more positive than they were during last year and we’re already seeing this reflect in business levels.

“This reinforces our belief that landlords want to invest in the sector in response to continued strong levels of tenant demand. We’re aiming to support this by providing landlords with more choice, offering five per cent and nil fee products as well as options that include £750 cashback, which can be used to cover legal expenses, for example.”

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    Just lost £7500 trying to get a mortgage with paragon, their solicitors made sure the deal was held up and we finally ran out of time as the mortgage offer expired. They may have been the darling of buy to let , now they are just con merchants in my opinion


    Green mortgages are for green applicants - better deals are always available on the wider traditional market.

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    All I can say is a 5% fee on a five year fix is 1% per annum so the adjusted rate is 5.89% on their proclaimed "from" rate. I just got a two year fix (which is currently a more expensive option) for 5.57% fee free from the Coventry who I was already with so no survey fees or anything else to pay for.
    A non-story in my opinion.


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