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 offered 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, managing 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.”
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
