Paragon launches 5-year fixes from 3.75%
Paragon has launched a range of 5-year fixed rate buy-to-let mortgages for individuals and through limited companies starting at 3.75% to 75% loan-to-value.
Products feature a revised interest coverage calculation based on an interest rate assumption of 4% with an interest coverage ratio set at a minimum of 125% for single self-contained units and 130% for more complex HMO properties.
John Heron (pictured), managing director of Paragon Mortgages, said: “With the outlook for interest rates now much lower for longer, we have been able to deliver these longer-term fixed rates aimed at professional landlords including those borrowing through limited companies and those purchasing HMOs.
“These are the first products we have launched which feature an interest coverage ratio that reflects lower interest rate expectations and the reduced risk that customers on longer term fixed rates benefit from.”