Paragon Mortgages is launching a new range of five year, fixed rate buy-to-let mortgage products for individual and limited company landlords, with interest rates starting from 3.75%.
Fixed rates are available at loan to value ratios (LTVs) of up to 75% and the range includes funding for self-contained units as well as more complex HMO properties.
These new longer term fixed rate products feature a revised interest coverage calculation based on an interest rate assumption of 4% with the interest coverage ratio (ICR) set at a minimum of 125% for single self-contained units and 130% for more complex HMO properties.
John Heron, 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 ICR that reflects lower interest rate expectations and the reduced risk that customers on longer term fixed rates benefit from.