New fixed-rate mortgages from Paragon - News at Best UK Mortgages - Tuesday, 28th June 2005

Paragon Mortgages has today released news of its new fixed-rate mortgages.

The buy-to-let mortgages provider announced a five-year fixed-rate mortgage product with a 5.25 per cent rate.

A summary of the deal includes the 5.25 per cent rate fixed until October 31st 2010, thereafter three month LIBOR and 1.50 per cent, and a rent-to-mortgage calculation of 125 percent to a five per cent reference rate.John Heron, managing director of Paragon Mortgages, explained: "Decent five year fixed rates are rare because lenders find it easier to offer short term fixes or discounts with a huge step-up in rates when the fix or the discount comes to an end.

"This is therefore an unusual product, offering borrowers a very attractive rate over the full 5 year period," he added.

Paragon is anticipating "strong demand" for the new mortgages.