Paragon adds two-year BBR tracker options
Paragon Bank has added two-year bank base rate (BBR) tracker options for landlords, with rates starting from BBR plus 1%.
The range covers single self-contained properties (SSCs), houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), improving landlord choice.
For SSC properties at 75% loan to value (LTV), the two-year tracker is priced from BBR plus 1% – currently 4.75% – with a 2% product fee. The product includes a free mortgage valuation, no application fee and no early repayment charges.
Two-year tracker options for HMOs and MUBs at the same LTV tier start from BBR plus 1.35%, also with a 2% fee. These products offer the same benefit of no early repayment charges and include a free valuation.
Fixed rate reductions
Paragon Bank has also taken 15 basis points (bps) off a selection of its two-year fixed rate mortgages.
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Within the SSC range, rates begin at 3.4% for properties with an EPC rating of A-C at a 5% fee level, or 3.45% for less energy-efficient properties.
For HMOs and MUBs, pricing starts from 3.55% with a 5% fee, moving to 4.55% with a 3% fee and 6.05% on a no-fee basis. These products also benefit from free valuations, with application fees set at £299.
All of Paragon’s fixed rate products have ERCs of 3% in each of the first two years, then revert to Paragon Bank’s standard variable rate (SVR), currently 7.35%, less 1.25%.
James Harrison, product manager at Paragon Bank, said: “We’ve had a strong response to our BBR tracker range over the past six months after launching five-year options in December last year, before adding two-year terms at the start of this year.
“Extending the range to total 14 options for new customers, alongside six switch and four further advance products, and introducing more fee options, we are giving brokers greater scope to match products to their clients’ priorities, whether that is focusing on pay rate, upfront cost or overall balance across a portfolio.”
At the end of June, the firm launched a cashback offer for landlords.
