Paragon Bank doubles mortgage rate window to six months

Paragon Bank has doubled the period that buy-to-let customers can lock in a mortgage rate from three months to six months.

It says it will offer brokers a 0.30% proxy fee for each product change they present to the lender.

The company sells a range of two- and five-year fixed rate products aimed at those looking to transition to a new loan, with rates starting at 2.95%.

It adds that its products are available for non-portfolio homeowners wanting to finance self-contained single units and for portfolio homeowners — those with four or more mortgaged properties — borrowing against multi-occupancy and multi-unit homes.

Loans are also available for customers operating as LLCs or LLCs.

Moray Hulme, director of mortgage sales at Paragon Bank, says: “In 2017, changes at Prudential. The Regulator’s underwriting standards have resulted in a significant increase in the number of BTL mortgages underwritten at five-year fixed rates.

“We have already seen how this has started to boost mortgage activity and we expect this to continue throughout 2022.

With the Bank of England having recently raised the base rate from 0.25% to 0.50%, and further increases are expected to occur throughout the year, I expect a number of ‘borrowers want to switch to a new product sooner. rather than later lock in one of the competitive offers currently available.

We have listened to the market and know that the three-month extension of the window in which borrowers can switch to a new product will be a welcome step, helping to provide homeowners with some security in the current economic change.

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