Paragon Bank has launched its cheapest buy-to-let five-year fix in almost three years, becoming the latest lender to offer landlords more attractive deals.

Rates for the firm’s limited-edition buy-to-let mortgage start at 4.29% for those purchasing or remortgaging Single Self-Contained (SSC) properties with EPC ratings of A to C. Five-year options for SSCs rated EPC D or E and HMOs have interest charged at 4.34% and 4.64% respectively.

These mortgages are available at up to 65% loan-to-value with a 5% product fee. Paragon is also offering nil fee versions priced one-percentage point higher than the corresponding 5% fee products.

James Harrison, mortgages product manager, says it wants to give landlords more choice and offer solutions that suit a broader spectrum of customers. “These products will be particularly appealing to those that can put down a slightly larger deposit to benefit from lower rates,” he explains.

“Our expertise means that we’re sometimes seen as an HMO or multi-unit block lender. While it is true that we do have lots of experience in this space and work with established landlords, we also support newer entrants to the market who may be growing their portfolios with more simple propositions, such as single self-contained properties.”

Drop in mortgage rates

President Trump’s Liberation Day tariffs appear to have sparked a drop in mortgage rates, with other lenders making similar announcement in recent days.

Virgin Money’s BTL Fix and Switch fixed rates have been lowered by 0.10%, starting at 4.80%. Selected two- and five-year BTL fixed rates with either a 1% fee or £995 fee are down by up to 0.10%, with new pricing from 4.20%, while fee-saver BTL deals at 75% LTV were also reduced by up to 0.10%, starting from 4.60%.

HSBC is to cut its rates across a wide range of mortgage products from today (April 28). Buy-to-let rates have reduced by up to 0.12% with sub-4% options available, including a 60% LTV remortgage at 3.91% with a £3,999 fee.

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