Paragon has reduced the interest rates on its second charge mortgage products.
Highlights of the early repayment charge (ERC) product range include a lead variable interest rate of just 3.47%, together with 2-year fixed rate loans from 3.64%, 3-year fixed rates from 3.75% and 5-year fixed rates from 3.98%.
John Webb (pictured) second charge mortgages director at Paragon, said: “This is a really exciting range of second charge mortgage products.
“The competitive interest rates are designed to broaden the appeal of the products to a wider range of intermediaries and offer them an alternative solution for customers who want additional mortgage borrowing without having to disrupt their existing arrangements.”
On the non-ERC range, product options include a lead variable rate of 3.63%, as well as 2-year fixed rate loans from 3.64%, 3-year fixed rate loans from 3.75% and 5-year fixed rates from 3.98%.
Aimed at prime customers, Paragon’s second charge mortgage products are available at a maximum loan-to-value (LTV) of up to 85% and can be extended for up to 30 years. They also include a choice of products with and without an early redemption charge (ERC).
Paragon said that second charge mortgages can provide an attractive alternative to remortgaging for homeowners in a wide variety of circumstances, including where a customer wants to retain a favourable interest rate or avoid an expensive ERC on their main mortgage.
Daniel Yeo, owner at Specialist Finance Centre, added: “This is a positive move from Paragon. There’s lot of talk of doom and gloom in the market but this shows Paragon has appetite for second charges and are competing in this space.”
Second charge mortgages can also offer a wider choice of loan purpose options compared with first charge products.
Mortgage intermediaries can see Paragon’s full range of second charge products on the Iress Trigold, MortgageBrain and Twenty7Tec sourcing systems.
Intermediaries can submit a mortgage application through a wide selection of master packagers or by getting in touch with Paragon direct.