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Both Paragon and Pepper Money have launched new buy to let investment products, with five-year fixed deals being the name of the game.
Paragon has refreshed its buy to let range for both portfolio and non-portfolio landlords, offering five-year mortgage products with an initial interest rate of 3.80 per cent for portfolio landlords looking to purchase or remortgage single, self-contained units, and 3.90 per cent for landlords seeking finance for houses in multiple occupation and multi-unit blocks.
All the Paragon products are available to individual landlords as well as those operating in limited companies and limited liability partnership, with an interest coverage ratio starting from 4 per cent.
Another new Paragon offering of note is a five-year fix at a 75 per cent LTV, with £250 cashback and no product or application fee.
John Heron, Paragon director of mortgages, said: ‘The cost certainty that a longer-term fix provides will be an appealing prospect to many as the Brexit process continues into 2019 and landlord taxation takes the next step up.’
He continued: ‘By adding products into our range that remove many of the up-front costs associated with arranging finance, we aim to give landlords more flexibility to decide the best route forward for their business.’
Meanwhile, Pepper Money have also come up with new five-year fixed offerings to the buy to let investment market, with rates starting at 3.28 per cent.
The Pepper range features a special flat fee option, which is available at 3.28 per cent for 75 per cent LTV and has a completion fee of £3,950.
There is also a Pepper range of five-year fixed rate products with a 1 per cent completion fee. These rates are available at 3.37 per cent for 65 per cent LTV, 3.47 per cent for 70 per cent LTV, 3.57 per cent for 75 per cent LTV and 3.77 per cent for 80 per cent LTV.
Marketing director at Pepper Money, James Blower, said: ‘At Pepper Money, we are always looking for ways to deliver competitive solutions to interesting cases and this limited edition is another example of identifying an opportunity for brokers to provide their clients with a better deal.
He continued: ‘Buy to let applications increasingly require bespoke assessment and now brokers can access mortgages with a flexible approach to individual underwriting and five-year fixed rates available from just 3.28 per cent. It’s a great way to kick-start the New Year for brokers and their landlord clients.’