Buy to let specialist lender Paragon Bank has introduced offers on its two-year fixed rate BTL mortgages, including its lowest rate in the past 18 months and cuts of up to 35 basis points.
The lender has unveiled a new 70 per cent loan to value two-year fixed rate mortgage product starting at 3.94 per cent for single self-contained properties with EPC ratings A to C.
The rate increases to 3.99 per cent for single self-contained properties with D and E EPCs and to 4.19 per cent for HMOs and multi-unit blocks.
Paragon says this is its lowest rate for a two-year fixed term in over 18 months. The product carries a 5.0 per cent fee.
“Although there is still work to do to stabilise the economy, things do seem to be heading in the right direction and the general feeling is that rates are coming down” says Louisa Sedgwick, commercial director at Paragon Bank.
“This means that we’re seeing landlords seek the stability of a fixed rate but over the shorter two-year term so they can reassess the market in a couple of years’ time.”
Across the mortgage board, average buy to let fixed-rate mortgage rates are now down to 5.5 per cent from 6.79 per cent last August.
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Once again this is misleading. A headline rate of 3.94% is actually 6.44% when you add in a 5% fee spread over 2 years. Not the cheapest available on the market without any EPC specifications.
Green mortgages are for green people who can't do sums anyway as they invest in stupid green "improvements" which will never pay for themselves when the cost of money is included in the business case.
I notice it doesn't apply to flats which must be the bulk of rental properties?
Just a thought. Is the 5% fee only subject to the 20% tax relief like interest, full tax relief as it's not interest, or count as a capital expense with only cgt relief eventually?
@ Robert - green is often a sign of mould.
Well picked out -Emily.
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