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.

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“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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