Some mortgages are now tied to the EPC rating

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.”

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