John Heron, managing director of Paragon Mortgages, comments: “Decent 5 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.”
5 year 5.25% fixed rate summary:
- 5.25% fixed until 31 October 2010, thereafter 3 month LIBOR + 1.50%
- 0.50% completion fee added to loan
- Early redemption charge: 9 months’ interest for first 5 years
- Normal scale valuation fees apply
- Rent-to-mortgage calculation: 125% at 5% reference rate
John Heron concludes: “This must be our best ever rate and we’re expecting strong demand from borrowers. As funds are limited, I’d encourage customers to contact us quickly to take advantage of this opportunity.”
