Paragon and Molo are the latest lenders to reduce BTL rates

Paragon and Molo are the latest lenders to reduce BTL rates

0:05 AM, 31st July 2024, About An hour ago

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Paragon Bank has refreshed its product range, offering landlords more competitive buy to let mortgage options.

Rates for single self-contained properties with energy efficiency ratings A-C begin at 3.89%, rising to 3.94% for homes with EPC D or E.

These deals are available at 70% loan-to-value (LTV) with a 5% fee.

‘Landlords looking for two-year fixed-rate products’

Paragon’s mortgages commercial director, Louisa Sedgwick, said: “Since the start of the year, we’ve seen a steady increase in the proportion of landlords looking for two-year fixed-rate products and we have responded by launching these competitive rates, with a range of LTVs and fees, providing landlords with plenty of choice.

“Some landlords are keen to fix for a shorter duration than the traditional five-year term so they have the ability to reassess the market in a couple of years, when it is anticipated that rates will be lower.”

Two-year fixed rates

For borrowers requiring up to 75% LTV, Paragon is providing two-year fixed rates from 4.80% with a 3% fee.

Alternatively, landlords can opt for a 1.5% fee and rates starting at 5.55% for EPC A-C properties or 5.60% for EPC D and E.

Landlords financing houses in multiple occupation (HMOs) or multi-unit blocks (MUBs) can also benefit from the new rates, with options starting at 4.14% at 70% LTV and 5.05% at 75% LTV.

Interest Coverage Ratios (ICRs) are calculated based on the initial rate plus two percentage points.

The products are accessible to individual and limited company borrowers in England, Scotland, and Wales, and include a free mortgage valuation. A £299 application fee applies.

Molo Finance also reduces BTL mortgage rates

Meanwhile, Molo Finance has announced reductions of up to 25 basis points on its buy to let mortgage rates for UK residents, expats and some specialist property types.

However, rates for non-UK residents remain unchanged, and tracker rates have increased.

Molo’s distribution director, Martin Sims, said: “We are pleased to announce these updated rates across our buy to let product range.

“By offering more competitive rates, we aim to empower intermediaries to secure optimal financing solutions, helping them to meet their client’s needs.”

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below:

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