Paragon Mortgages has updated its range of fixed rate buy to let products in an attempt to cater for a more diverse market of landlords.
Paragon Mortgages has updated its range of two and five year fixes available to individual landlords and limited companies. New products on offer include fixed deals at 3.75 per cent and 3.85 per cent at 75 per cent LTV. There are now two and five year fixed rate products on offer for self contained units as well as houses in multiple occupation (HMOs) and multi-unit blocks (MUB).
The updated range also includes two five year fixed products and a five year stepped fixed rate, aiming to help landlords as they plan for the long term, facing the phasing in of the Governments changes to mortgage tax relief
There is now a five year fixed rate available at 3.75 per cent with a 1.50 per cent product fee at 75 per cent loan-to-value (LTV) for single self-contained units. Another five year fixed rate is on offer at 3.85 per cent with a 1.50 per cent product fee at 75 per cent LTV for HMOs and MUB. Finally, the five year stepped fixed rate is at 3-4 per cent with a 2 per cent product fee at 75 per cent LTV for each property type.
The interest coverage ratios on these products remain unchanged and start at 125 per cent at 4 per cent, graduated to reflect the individual tax status of each landlord.
Paragon’s short term range has also seen an overhaul. A two year fix at 3.20 per cent for lending up to 65 per cent LTV is now on offer, as well as another at 3.30 per cent for lending up to 75 per cent LTV.
Managing Director, Paragon Mortgages, John Heron, 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.’