Paragon Updates Buy-to-Let Range with Longer Term in Mind
Paragon Mortgages has updated its buy-to-let range with longer term products in mind, for both property purchases and remortgages.
The fixed rate products, which are available to individual landlords and limited companies, include two and five-year fixed rate deals for self-contained units, Houses in Multiple Occupation (HMOs) and multi-unit blocks (MUB).
As landlords continue to put longer term plans in place – with the phasing in of the Government’s reduction in mortgage interest tax relief now underway – highlights of the updated range include two five-year fixed rate products and a five-year stepped fixed rate deal.
Available from today is a five-year fixed rate product 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 deal at 3.85%, with a 1.50% product fee at 75% LTV for HMOs and MUB.
The five-year stepped fixed rate product 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.
In addition to these new longer term offerings, the specialist lender’s range of shorter term, two-year fixed rate products has also been refreshed, with 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.
The Managing Director of Paragon Mortgages, John Heron, comments on the updated range: “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.”