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Paragon mortgages announces new buy-to-let fixes
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Paragon Mortgages has today moved to launch a new range of five-year, fixed-rate mortgage products for both individual and limited company landlords.
These new mortgage rates at 75% loan-to-value begin from 3.75%, with the products including funding for both self-contained homes, alongside more complex properties.
Lower interest rates
John Heron, managing director of Paragon Mortgages, observed: ‘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 HMO’s.’[1]
‘These are the first products we have launched which feature an ICR that reflects lower interest rate expectations and the reduced risk that customers on longer term fixed rates benefit from,’ he added.[1]
Paragon mortgages announces new buy-to-let fixes
The new longer term fixed rate products include a different interest coverage calculation based on an interest rate forecast of 4%. This is with the interest coverage ratio (ICR) set at a minimum of 125% for single self-contained units and 130% for more difficult HMO properties.
[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/new-five-year-btl-fixes-from-paragon
