Paragon launches new fixed rates

Ryan Fowler

May 3, 2017

Paragon Mortgages has launched a refreshed range of fixed rate buy-to-let mortgage products for both purchase and remortgages.

The products, which are available to individual landlords and limited companies, include two and 5-year fixed rates for single self-contained units, houses in multiple occupation (HMOs) and multi-unit blocks (MUB).

John Heron (pictured), managing director, Paragon Mortgages, said: “Our range of mortgage products is designed with a diverse market in mind, catering for different types of landlords with individual requirements.

“With the tax changes now being phased in, and continued challenges for landlords over the long term, these products support long term planning and reflect the trend we’ve seen of a preference towards longer term fixed rates.”

The rates start at 3.75% for a 5-year fix with a 1.50% product fee at 75% loan-to-value (LTV) for single self-contained units, and a 5-year fixed rate at 3.85% with a 1.50% product fee at 75% LTV for HMOs and MUB.

The 5-year stepped fixed rate is at 3-4% with a 2% product fee at 75% LTV for each property type. Interest coverage ratios on these products are unchanged, starting at 125% at 4%, graduated to reflect each landlord’s individual tax status.

Paragon’s range of shorter term, 2-year fixed rate products has also been refreshed, with other highlights including a 2-year fix at 3.20% for lending up to 65% LTV and another at 3.30% for lending up to 75% LTV.

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