Paragon Mortgages has launched a refreshed range of fixed rate mortgage products available for buy-to-let property purchases and remortgages.
The products, which are available to individual landlords and limited companies, include two and five year fixed rates for single self-contained units, houses in multiple occupation (HMOs) and multi-unit blocks (MUB).
As landlords continue to plan for the long-term, with the phasing in of the Government’s changes to tax relief now underway, highlights of the updated range include two five year fixed products and a five year stepped fixed rate.
Available from today is a five year fixed rate at 3.75% with a 1.50% product fee at 75% loan-to-value (LTV) for single self-contained units, and a five year fixed rate at 3.85% with a 1.50% product fee at 75% LTV for HMOs and MUB. The five 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, two year fixed rate products has also been refreshed, with other highlights including a two year fix at 3.20% for lending up to 65% LTV and another at 3.30% for lending up to 75% LTV.
John Heron, 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.