Paragon Bank has expanded its buy-to-let mortgage offerings with new 5-year fixed-rate options, starting at a rate of 4.89%.

These products are aimed at landlords looking to purchase or remortgage single self-contained (SSC) properties with high energy performance ratings (EPC A-C), with rates slightly higher for properties with lower energy efficiency and for Houses in Multiple Occupation (HMO) and Multi-Unit Blocks (MUB).

The bank is also providing deals with no application fees and offers £750 cashback on selected mortgages, catering to the varying needs of landlords.

These incentives are part of Paragon’s effort to support investment in the rental sector, amid signs of increasing optimism among landlords and brokers.

Louisa Sedgwick, commercial director at Paragon Bank, commented on the market sentiment, “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.”

She further added” “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 5% and nil fee products as well as options that include £750 cashback, which can be used to cover legal expenses, for example.”

These mortgages are available up to 75% loan-to-value (LTV) for landlords operating through limited companies or in their personal names in England, Scotland, and Wales, with interest coverage ratios (ICRs) calculated based on initial rates.