Paragon Bank has recently reduced its rates, but the best rates are only available to properties with better energy rating.

Paragon’s 70 per cent LTV two-year fixed rate product, now priced at 4.59 per cent is available to portfolio landlords for the purchase or remortgage of single self-contained homes with EPC ratings of A-C. Rates increase to 4.64 per cent on properties banded EPC D or E and 4.84 per cent on HMOs and MUBs.

The product fee on the two-year fixes is set at 5.0 per cent and interest coverage ratios (are calculated at two percentage points above initial rates.

Louisa Sedgwick, Commercial Director at Paragon Bank, says: “In this market, landlords want options, so we are pleased to offer these competitive rates with a mix of terms, LTVs and fees.

“With a range of different indicators suggesting that the UK economic outlook is strengthening, the stabilisation of swap rates has continued and, as a result, we’ve been able to again reduce rates on some of our key products.”