“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.”
– Louisa Sedgwick, commercial director at Paragon Bank

Paragon Bank has reduced rates on its two-year fixed rate buy-to-let mortgages by up to 35bps, launching its lowest rate for 18 months.

A new 70% LTV two-year fixed rate product starts at 3.94% for green A-C EPC-rated single self-contained (SCC) properties, 3.99% for SSC properties at EPC D-E and 4.19% for HMOs and multi-unit blocks. The product comes with a 5% fee and is available for portfolio landlords.

75% LTV two-year fixed rate products with a 3% fee have reduced by 35 basis points, starting at 4.85% for green properties, 4.90% for standard properties and 5.10% for HMOs and multi-unit blocks, available for portfolio landlords.

In addition, 75% LTV two-year fixed rates with a 3% fee have reduced to 4.85% for green properties and 4.90% for standard properties for non-portfolio landlords.

ICRs are calculated at two percentage points above initial rates. The lender’s mortgages are available to landlords applying through limited company structures or in a personal name in England, Scotland and Wales.

Louisa Sedgwick, commercial director at Paragon Bank, said: “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. 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.

“With it being Valentine’s Day, we wanted to show some love to our landlord customers so we’re offering our lowest rate on two-year fixes for new customers in over 18 months and have taken 35bps off our 3% fee two-year product too.”