Specialist lender Paragon Mortgages has added a new range of five year, fixed rate buy-to-let products to its range.
The new mortgages, targeted at individual and limited company landlords, offer interest rates starting at 3.75 per cent and are available at up to 75 per cent LTV.
The range includes funding for self-contained units as well as more complex HMO (house of multiple occupation) properties.
The new longer term fixed rate products feature a revised interest coverage calculation based on an interest rate assumption of 4 per cent with the interest coverage ratio (ICR) set at a minimum of 125 per cent for single self-contained units and 130 per cent for more complex HMO properties.
Paragon Mortgages managing director John Heron says that with interest rates forecast to remain low for some time, the lender has been able to offer longer term fixes.
“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,” he says.