Paragon Bank has announced the launch of a five-year fixed rate buy-to-let mortgage with a reduced reference rate. The mortgage is available at 70% loan-to-value (LTV) with an initial rate priced at 5.69%. The product is subject to a 2.00% product fee and features a free mortgage valuation.  

Perhaps of most interest to landlords is the fact that Paragon is offering the five-year fix with an ICR (Interest Coverage Ratio) calculation rate that has been reduced from 7.00% to 5.75%. 

The product is available in England, Wales and Scotland and is suitable for portfolio landlords - those with four or more mortgaged properties – purchasing or remortgaging houses in multiple occupation (HMO), multi-unit blocks (MUB) and single self-contained (SSC) properties. 

Moray Hulme, director for mortgage sales at Paragon, said: “With a level of stability returning to the market we’re pleased to be able to offer a five-year fixed rate product that features a market-leading initial rate. Listening to brokers, we know that landlords have still been keen to stay active in the market, particularly as tenant demand remains strong, so to help facilitate this we have reduced the rate at which we calculate ICRs from 7.00% to 5.75%.”