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Paragon launches buy-to-let remortgage range

Paragon Bank has enhanced its portfolio product range with the launch of two remortgage only products.

Both products come with £500 cashback and a free mortgage valuation and are available to landlords remortgaging in their personal names or through their limited company.  

The first is suited to portfolio landlords looking to remortgage at up to 75% loan-to-value (LTV) on single self-contained properties. A rate of 3.45% is fixed for five years, with an APRC of 4.20% and a product fee of 1.50%.

The second, also offered at 75% LTV, is available on HMOs and multi-unit blocks (MUB) at a rate of 3.65% fixed for five years. The product fee is set at 2.00% and the APRC is 4.30%.

The proportion of buy-to-let remortgage business is expected to grow during 2021 as Paragon research revealed that buy-to-let mortgage brokers will switch their attention to the remortgage of five-year after the Stamp Duty holiday ends at the end of March.

Half of brokers that deal in buy-to-let (50%) said that they will focus on five-year remortgage business when the Stamp Duty holiday ends. The number of five-year fixed rate buy-to-let mortgages increased significantly in the run-up to the introduction of the buy-to-let Stamp Duty surcharge in April 2016. Industry data shows that the number of five-year fixed buy-to-let completed in the six months to the end of March 2016 was 121% higher than the same period in 2015.

Moray Hulme, Director for Mortgage Sales said: “The introduction of a 3% buy-to-let Stamp Duty surcharge in April 2016 lead to a marked increase in landlords choosing five-year fixed rate mortgages.

“Research we have carried out confirmed our expectation that a significant number of brokers will be looking to support landlords who are in the process of remortgaging now that those five-year mortgages are reaching maturity. The launch of our two remortgage products is a timely and useful addition to our range for brokers who are targeting this business.”

Early redemption charges (ERC) of 5% are in place during years one and two, charged at 4% for years three and four and 3% for year five.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551