According to the lender, the product is available at 70% loan-to-value with an initial rate priced at 5.69% and is subject to a 2.00% product fee and features a free mortgage valuation.
Paragon is offering the five-year fix with an ICR calculation rate that has been reduced from 7.00% to 5.75%.
The product is suitable for portfolio landlords - those with four or more mortgaged properties – purchasing or remortgaging houses in multiple occupation, multi-unit blocks and single self-contained properties.
ERCs of 5% are payable in years one and two, 4% during years three and four and 3% in year five. APRC is 6.20% and the reversion rate is 5.85% - Paragon SVR less 1.25%.
Moray Hulme, (pictured) Director for Mortgage Sales, said: “With a level of stability returning to the market we’re pleased to be able to offer a five-year fixed rate product that features a market-leading initial rate. We feel this will really appeal to those landlords who seek the certainty provided by fixed rates and should sit well alongside our discounted variable products, giving investors some choice.
“Listening to brokers, we know that landlords have still been keen to stay active in the market, particularly as tenant demand remains strong, so to help facilitate this we have reduced the rate at which we calculate ICRs from 7.00% to 5.75%.”
