Paragon Bank has reintroduced its Track to Fix feature to its range of Bank Base Rate (BBR) tracker buy-to-let mortgages, enabling existing customers to switch to an available Paragon fixed-rate switch product during the tracker term without incurring an early repayment charge (ERC).
The enhancement applies across Paragon's BBR tracker switch product range for single self-contained properties (SSCs), houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).
Track to Fix allows landlords to apply to switch from a BBR tracker mortgage onto any available Paragon product switch fixed rate during the tracker term without paying an ERC, subject to the eligibility requirements applicable at the time of application.
For SSC properties, two-year BBR tracker mortgages are available at up to 75% loan-to-value (LTV), with rates starting from 5.10% (BBR +1.35%) with a 1.50% fee. An alternative 0.75% fee option is available from 5.47% (BBR +1.72%).
Equivalent products for HMOs and MUBs are available with rates starting from 5.45% (BBR +1.70%) with a 1.50% fee, while a 0.75% fee option is available from 5.82% (BBR +2.07%).
The enhancement follows the launch of Paragon's BBR tracker range, which replaced the lender's previous variable rate products linked to its Standard Variable Rate (SVR). The Track to Fix feature was previously available on Paragon's discounted variable rate products and has now been incorporated within the BBR tracker proposition.
James Harrison, Product Manager at Paragon Bank, said: "We've received a positive response since replacing our previous variable rate products with our Bank Base Rate tracker range and we've continued to review how we can further strengthen the proposition for brokers and landlords.
"Track to Fix proved a popular feature on our previous discounted variable rate products because it enabled customers to move into a fixed rate without incurring an early repayment charge. By reintroducing the feature to our BBR tracker range, existing customers have another reason to consider these products.
"Landlords can benefit from a mortgage that tracks movements in Bank Rate while retaining the option to switch to a Paragon fixed-rate product at a later date should they wish to take a different approach to managing their borrowing."
