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Buy-to-Let Lenders Adjust Rates and Criteria, Paragon Cuts Some Fixed Rates

Landlords are facing a mixed landscape of changes from buy-to-let lenders, with Paragon Bank reducing some five-year fixed rates while HSBC has increased selected fixed deals.

  • Paragon Bank has lowered selected five-year fixed buy-to-let rates by 15 basis points.
  • HSBC has increased selected fixed deals by up to 0.14%, with one two-year product rising to 4.70%.
  • StrideUp has doubled the accepted size of HMOs and multi-unit freehold blocks for its shariah-compliant Buy to Let Purchase Plan.

Landlords considering property purchases, refinancing, or refurbishment are encountering a varied set of adjustments from buy-to-let lenders. These changes include some lower rates, broader specialist criteria, and one notable price increase.

Paragon Bank has reduced selected five-year fixed buy-to-let rates by 15 basis points. These reductions apply to single self-contained properties, Houses in Multiple Occupation (HMOs), and multi-unit blocks. Its green mortgage range now starts at 4.95% for properties with an EPC rating of A-C.

In contrast, HSBC has increased selected fixed deals by up to 0.14%. Its two-year product at 75% loan-to-value has risen by 0.11% to 4.70%.

Specialist lender StrideUp has expanded its criteria for shariah-compliant Buy to Let Purchase Plans, now accepting HMOs with up to 12 bedrooms and multi-unit freehold blocks with as many as 10 units. CHL Mortgages has also launched a new bridging finance range for regulated and non-regulated loans, covering property transactions and refurbishment work.

What this means for you: If you are a landlord, these changes could affect the rates available for new property purchases, refinancing, or refurbishment projects.

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