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More landlords opting for ‘longer term fixed rates’

A growing number of buy-to-let landlords are looking to take advantage of record low borrowing rates by locking into longer term fixed rate deals, according to Paragon Mortgages.

To cater for growing demand, Paragon has refreshed its range of buy-to-let fixed rate mortgage products, which are available to individual landlords and limited companies for buy-to-let property acquisitions and remortgages, including two- and five-year fixed rates for single self-contained units, houses in multiple occupation (HMOs) and multi-unit blocks (MUB).

Paragon’s revised range of two-year fixed rate products now include a deal at 3.2% up to 65% loan-to-value and 3.3% at up to 75% LTV.


The lender’s range of longer term, five-year fixed rate products has also been refreshed, with deals including a five-year fix at 3.75% with a 1.5% product fee at 75% LTV for single self-contained units, and a five-year fixed rate at 3.85% with a 1.5% 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.

“Our range of mortgage products is designed with a diverse market in mind, catering for different types of landlords with individual requirements,” said John Heron, managing director of Paragon Mortgages.

“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,” he added. 

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