Brace of providers launch new mortgage deals
A brace of mortgage providers have today moved to launch new fixed rate deals.
Paragon Mortgages and Yorkshire Building Society have announced fresh three and five year deals-the former targeting buy-to-let landlords specifically.
New rates
This morning, Paragon announced their new five-year fixed-rate buy-to-let mortgage for both individual and limited company landlords. Interest rates start from 3.75%.
These fixed rates are available at LTV ratios of up to 75%, with the range including funding for self-contained units, alongside more complex HMO properties.
The new longer-term fixed-rate products include a more revised interest coverage calculation, which is based on an interest rate assumption of 4%. The interest coverage ration is 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, observed: ‘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 interest coverage calculation that reflects lower interest rate expectations and the reduced risk that customers on longer-term fixed rates benefit from.’[1]
Brace of providers launch new mortgage deals
Cuts
Meanwhile, Yorkshire Building Society has announced that it has cut selected three and five-year fixed rate mortgages by 0.14%.
These cuts are applicable to three and five-year fixes 65%, 75% and 85% LTVs for both purchase or remortgage.
New three-year fixed rate deals include a 75% LTV at 1.88% and an 85% LTV at 2.03%. Five-year fixes are available from 1.98% at 65% LTV and 2.08% at 75% LTV. Each of these mortgages comes with a fee of £845.
Brendan Gilligan, Mortgage Product Manager for Yorkshire Building Society, noted: ‘we always try to offer our customers a range of mortgage options and good long-term value for money. Our rate reductions will offer borrowers with a range of deposits competitive rates and the security of knowing how much their mortgage repayments will be for the next couple of years, especially during this time of economic uncertainty.’[1]
[1] http://www.propertyreporter.co.uk/finance/paragon-announces-new-five-year-btl-fixes.html