Paragon has recently updated its buy-to-let product range added six new mortgage* products to its portfolio. These are designed with the intention of giving landlords more flexibility to help with their financial planning.
Six new fixed rate products will be added to refresh the existing range and all are available now. There are new two-year fixed-rate products starting at 3.40% with a 1.50% product fee at 65% LTV for single self-contained units. There is also a two year fix at 3.75% with a 1.50% product fee at 65% LTV for HMOs and multi-unit blocks.
Along with the two-year fixes, three new five year fixes are available for those landlords looking to plan their finances for the longer-term. Rates start at 4.20% with a 1.50% product fee at 65% LTV for single self-contained properties – for both individual and limited company landlords.
Paragon will also be offering a range of stepped fixed-rate products, designed for landlords who want that extra degree of flexibility in their financial planning. The five year fixed-rate products can either increase in rate each year until the end of the product term, or decrease dependent on the landlord’s preference.
John Heron, Director of Paragon Mortgages, says:
“We have re-dated our existing product range and then added six new fixed rate products. The product range caters for different types of landlord, whether they be limited companies or individuals. The stepped rate products have been created to allow landlords that extra flexibility with their financial planning. With tax liabilities increasing from April 2017, a stepped rate product which moves from a higher rate to a lower rate could help landlords plan for a rise in their tax bill. However, intermediaries will need to talk to their landlord customers to ensure they fully understand how these products work and whether they would be suited to their circumstances.”
- *Note: Paragon does not accept applications for consumer buy-to-let, instead these applications will be considered via their Mortgage Trust brand.
Paragon Mortgages launches new products… https://t.co/UuRLQrYlpC
— LandlordZONE (@LandlordZONE) June 14, 2016