Paragon Bank has refreshed its two-year BTL fixed rate mortgages, while Molo Finance has also lowered its BTL mortgage rates by up to 25 bps
Mortgage lenders Paragon Bank and Molo Finance have announced updates to their product offerings, benefitting their BTL and retirement mortgage customers.
Paragon Bank has refreshed its two-year BTL fixed rate mortgages. Rates start at 3.89% for single self-contained properties with ‘A’ to ‘C’ EPC ratings, rising to 3.94% for homes rated EPC ‘D’ or ‘E’, available at 70% LTV with a 5% fee. For those seeking up to 75% LTV, rates begin at 4.80% with a 3% fee or 5.55% with a 1.50% fee for EPC ‘A’ to ‘C’ properties, and 5.60% for EPC ‘D’ and ‘E’.
Landlords financing HMOs or MUBs have similar options, with rates starting at 4.14% at 70% LTV and 5.05% at 75% LTV. Interest coverage ratios (ICRs) are calculated at the initial rate plus two percentage points.
Since the start of the year, we have seen a steady rise in the proportion of landlords looking for two-year fixed rate products, said Louisa Sedgwick, mortgages commercial director at Paragon Bank. We have responded by launching these competitive rates, with a range of LTVs and fees, providing landlords with plenty of choice.
Digital lender Molo Finance has also lowered its BTL mortgage rates by up to 25 bps, with new rates for UK residents starting at 4.35% for two-year fixed BTL products at 75% LTV and five-year fixed rates at 4.96%.
Specialist property products, including MUFB, HMOs, holiday lets, and investor-led properties, now start from 4.45% for a two-year fixed rate and 5.06% for a five-year fixed rate.
Expats benefit from lowered rates of 4.99% for capital and interest mortgages and 5.74% for interest-only mortgages at 70% LTV. However, non-UK residents see unchanged fixed rates starting from 5.99% for a one-year fixed and 7.74% for a two-year fixed rate, with increased tracker rates starting from 8.65%.
We are pleased to announce these updated rates across our BTL product range, said Martin Sims, distribution director at Molo Finance. By offering more competitive rates, we aim to empower intermediaries to secure optimal financing solutions, helping them to meet their client’s needs.
