Paragon Bank has expanded its buy-to-let mortgage range with six new fixed rate products.

The buy-to-let specialist has also changed its lending criteria, reducing its interest coverage ratio (ICR) rate calculation. The ICR is the stress test it uses to check landlords could afford the mortgage if rates were to rise.

What’s new?

For portfolio landlords, Paragon has launched four new five-year fixed rate mortgages with rates starting at 5.40%, and a reduced interest coverage ratio (ICR) calculation rate starting at 5.50%.

Five-year fixed rate mortgages, with initial rates starting at 5.40%, are available at up to 75% LTV to non-portfolio landlords – those with between one and three mortgaged buy-to-let properties. The ICR is also set at 5.50% on this loan.

The products include a free mortgage valuation and are available on houses in multiple occupation (HMO), multi-unit blocks (MUB) and single self-contained (SSC) properties.

Moray Hulme, director for mortgage sales, said: “We’re really pleased to be able to expand our product range and offer more choice to buy-to-let investors with both small and large portfolios. Some will find the certainty of our competitively priced fixed rates appealing, especially as the ICR – which we’ve further reduced – should help to make the sums work for more borrowers.”