Specialist finance lender Paragon Mortgages is launching a new range of buy-to-let mortgage rates for landlords.
Fixed rates are available at loan-to-value (LTV) ratios of up to 75%. The range also includes funding for self-contained units, as well as more complex House in Multiple Occupation (HMO) properties.
The new, longer term fixed rate products feature a revised interest coverage calculation, based on an interest rate assumption of 4%. The interest coverage ratio (ICR) is set at a minimum of 125% for single, self-contained units and 130% for more complex HMO properties.
However, landlords must be aware that as of yesterday, the Bank of England’s base rate has been kept at the record low level of 0.25%.
The Managing Director of Paragon Mortgages, John Heron, says: “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.”
Landlords thinking of investing in the buy-to-let sector will welcome the new rates. However, you must remember to protect your new property investment with a market-leading Landlord Insurance provider.
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