Molo reduces BTL rates; Paragon reintroduces Tracker to Fix – round-up
Molo has reduced buy-to-let (BTL) rates by 12 basis points (bps) across its standard and specialist product ranges.
The reduced rates are available for UK residents only.
Two-year fixed rates across standard BTL now start from 3.09%, and five-year fixed rates start from 4.87%.
Specialist BTL rates, which include holiday lets, houses in multiple occupation (HMO), multi-unit freehold blocks (MUFBs), and new-builds, start from 3.19% on two-year fixes and 4.97% on five-year fixes.
Molo also continues to apply no rate premium for larger properties, including HMOs and MUFBs with 12 or more rooms or units.
Martin Sims, distribution director at Molo, commented: “The latest reductions strengthen our support for brokers working across the buy-to-let market. Whether placing straightforward landlord cases or more specialist transactions involving HMOs, holiday lets or larger portfolio borrowers, brokers can continue to access competitive pricing covering a broad range of client circumstances.”
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Paragon re-enhances BBR tracker BTL mortgages
Paragon Bank has reintroduced its Track to Fix feature to its range of Bank Base Rate (BBR) tracker BTL mortgages.
Existing borrowers can switch to an available Paragon fixed-rate switch product during the tracker term without incurring an early repayment charge (ERC).
The enhancement applies across Paragon’s BBR tracker switch product range for single self-contained properties (SSCs), houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).
For SSC properties, two-year BBR tracker mortgages are available at up to 75% loan-to-value (LTV), with rates starting from 5.10% (BBR +1.35%) with a 1.50% fee. An alternative 0.75% fee option is available from 5.47% (BBR +1.72%).
Equivalent products for HMOs and MUBs are available with rates starting from 5.45% (BBR +1.70%) with a 1.50% fee, while a 0.75% fee option is available from 5.82% (BBR +2.07%).
James Harrison, product manager at Paragon Bank, said: “We’ve received a positive response since replacing our previous variable rate products with our Bank Base Rate tracker range and we’ve continued to review how we can further strengthen the proposition for brokers and landlords.
“Track to Fix proved a popular feature on our previous discounted variable rate products because it enabled customers to move into a fixed rate without incurring an early repayment charge. By reintroducing the feature to our BBR tracker range, existing customers have another reason to consider these products.
“Landlords can benefit from a mortgage that tracks movements in Bank Rate while retaining the option to switch to a Paragon fixed rate product at a later date should they wish to take a different approach to managing their borrowing.”
