Paragon Mortgages has launched a new range of fixed and tracker rate buy-to-let mortgages.
It has launched three two-year tracker products, with rates starting from 3.30%, and a three-year tracker mortgage at 3.60%. In addition, it has introduced three two-year fixed rate mortgage products with rates starting from 4.25%.
Loan-to-values across the new products range from 60% to 75% and all products have a 2% fee, up to a maximum of £2,000.
The products are available for single, self-contained properties and applicants are required to have a minimum income of £40,000 per annum. Applications must be received by 31 March 2011 and the mortgages have to be completed by 31 May 2011.
Paragon says the products form part of its ongoing product development strategy and are primarily aimed at smaller scale landlord investors looking to expand their portfolios. They are the first additional products introduced by Paragon since its return to new lending in the buy-to-let market in September 2010 and signal Paragon’s intent to stimulate competition and choice in the sector.
John Heron, managing director of Paragon Mortgages, says: “The professional landlord remains Paragon’s core focus; however, it has always been our intention to extend the product range following our return to the market.
“These products complement our existing range and will appeal to a wide spectrum of landlords, but with a particular emphasis on smaller scale landlords looking to expand their portfolios.
“It is clear that there is strong demand from buy-to-let investors in the current market. Paragon’s research shows that nearly half of all mortgage brokers expect to see an increase in buy-to-let business during 2011 and the market needs more choice and competition. Therefore, Paragon is delighted to be able to offer these new products.”