Paragon launches five year fixed mortgage

Specialist buy-to-let lender Paragon Mortgages has introduced a new five year fixed rate product with a maximum loan-to-value ratio of 75 per cent, aimed specifically at large-scale landlords.

The new product carries a 5.49 per cent initial rate and a 2 per cent product fee, and is available for single unit properties, houses with multiple occupants and multi-unit blocks.

John Heron, managing director of Paragon Mortgages, said: “The buy-to-let market has been saturated with short-term fixes for the past two years. Whilst there are obvious benefits of two year and three year fixes, these can work out rather costly for landlords in the long-term.

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“This new five year fix is part of an ongoing programme of product development the aim of which is to widen the choices available and provide them an opportunity to get off the two-year treadmill.”

It sits within Paragon’s existing product range, which includes several lifetime trackers with rates starting at 4.5 per cent.