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Paragon pulls 2-year fixed rate products due to rising swap rates

Buy-to-let lender Paragon Mortgages has temporarily withdrawn both its two-year fixed rate products due to rising swap rates.

Brokers can submit applications for these mortgages until January 19.

Swap rates, the borrowing rates between financial institutions, have increased significantly over the past year. Two-year swap rates currently stand at 1.76 per cent as of January 14, an increase of 0.12 per cent in the past month and up 0.51 per cent on last year.

A spokeswoman says the lender has not permanently pulled out of fixed rate lending.

She says: “Swap rates have been a bit erratic over the past few days. It is based on swap rates and reviewing what we are offering.”

“We are not intending to pull out of the fixed rate market.”

The lender returned to new lending in September for the first time since February 2008 after securing a £200m revolving credit facility from Macquarie Bank.

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