The bank has lowered rates by 20 basis points (bps) on its fee-free five-year fixes, with rates starting at 6.10% for single self-contained (SSC) properties with energy performance certificate ratings of ‘A’ to ‘C’. The rate increases by 5bps for purchasing or remortgaging properties with EPC ratings of ‘D’ or ‘E’ and 20bps for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).

The products are available at up to 75% loan-to-value (LTV), previously 65%, and interest coverage ratios (ICRs) are calculated to align with initial rates.

Also reduced by 10bps were the lender’s 5% fee five-year fixed options, with rates starting at 5.15% on the green product, 5.20% on the standard SSC, and 5.40% for borrowers purchasing or remortgaging HMOs or MUBs. The products are available at up to 75% LTV and ICRs are calculated at 5.50%.

Paragon Bank said the mortgages are available in England, Scotland, and Wales, and are suitable for portfolio landlords – those with four or more buy-to-let mortgaged properties – applying through limited company structures or in their personal name.

“We’re keen to see our customers benefit from the stability that we’ve seen return to the economy, so we’re pleased to reduce rates across some of our five-year fixed rate products,” remarked Louisa Sedgwick (pictured), commercial director at Paragon Bank. “With both nil and 5% fee options available, we are also in a position to provide landlords with more choice.

“We’re also upping the LTV, from 65% to 75%, on our nil fee products to provide options that will work for more landlords.”