Paragon Bank has reduced rates on switch and further advance products by up to 46 basis points.
Paragon’s two-year fixed rate switch products start at 4.59% with a 3.00% fee, rising to 6.09% with nil fee.
Five-year fixed rate switch products are also available with rates starting at 5.39% when subject to a 3.00% fee, increasing to 5.99% with nil fee.
Paragon Bank mortgages product manager James Harrisons says: “The high level of switching that we’ve seen over the past few years is set to continue this year as lots of mortgages are due to mature.”
“Taking advantage of the particularly low rates on offer during the pandemic, a large number of landlords committed to five-year fixes so these mortgages are almost certainly maturing in a higher rate environment.”
“Conversely, those who opted for shorter two-year terms when rates were much higher in 2023 will likely be pleased to see products are now comparatively cheaper. Reducing our switch products across two and five-year terms will provide more options for landlords.”
Elsewhere, Landbay has cut rates by up to 0.40% across its buy-to-let (BTL) product range.
The headline rate reduction comes as part of Landbay’s large houses of multiple occupancy (HMO)/multi-use freehold buildings(MUFB) range, with rates now starting at 5.89% (down from 6.29%) for a five-year fixed rate deal at up to 75% loan-to-value (LTV).
The lender’s large HMO/MUFB products have now been added to the new product transfer range.
Meanwhile, small HMO products, available at up to 80% LTV, have been reduced by as much as 0.30%, with a five-year fixed rate deal now starting at 6.59%.
Small HMO/MUFB products can also be found within Landbay’s product transfer offering, which launched last week.
Landbay sales and distribution director Rob Stanton comments: “Cuts of as much as 0.40% demonstrates our commitment to ensuring our product range is competitive as possible, while expanding our PT range this early on shows we’re not shy to make improvements to best support our broker partners and their clients.”
Zephyr Homeloans has also announced it has reduced rates on its two- and five-year mortgage products.
Examples of products that the lender is offering for properties with an A to C-rated energy performance certificate (EPC) include:
• 3.14% on a two-year, fixed rate, standard mortgage up to 65% LTV, with a 7% fee
• 4.69% on a five-year, fixed rate, mortgage for new builds and flats above commercial properties up to 65% LTV, with a 7% fee
• 3.29% on a two-year, fixed rate, mortgage for HMOs and MUFBs up to 65% LTV, with a 7% fee
Examples of products that the lender is offering for properties with an EPC rating of D or E include:
• 4.74% on a five-year, fixed rate, standard mortgage up to 65% LTV, with a 7% fee
• 3.24% on a two-year, fixed rate, mortgage for new builds and flats above commercial properties up to 65% LTV, with a 7% fee
• 3.39% on a two-year, fixed rate, mortgage for HMOs and MUFBs up to 65% LTV, with a 7% fee
Zephyr Homeloans head of sales Andrew Rowe says: “We’re pleased to be able to support brokers and their landlord customers further with these new reductions.”
