Paragon Bank has widened its streamlined buy-to-let mortgage process to cover HMOs and multi-unit blocks, offering a quicker route for investors seeking higher-yielding properties. Rolled out this winter, the upgrade trims paperwork and speeds decisions at a time when many portfolio owners are chasing stronger returns and tighter financing certainty.
Specialist finance for landlords widens as lenders target higher yields
Paragon’s enhanced process now supports individual and limited company borrowers with up to 15 mortgaged properties, covering single units, HMOs and MUBs up to 75% LTV and £2 million exposure. The lender’s origination platform, introduced earlier in the year, auto-populates core application data from Companies House, Experian and Hometrack.
That automation means fewer friction points than many investors will be used to. Brokers handling qualifying applications now only need to supply a property schedule for landlords with four or more buy-to-let homes, while most cases no longer require payslips, tax returns or bank statements. Even limited companies avoid the usual request for two years of accounts unless underwriting flags a need.
For those trying to scale, this matters. HMOs typically generate rental returns 15–25% higher than comparable single lets in regions such as the North West and West Midlands, according to industry benchmarks, yet finance routes have remained paperwork-heavy. Paragon’s update attempts to close that gap.
Louisa Sedgwick, Managing Director of Mortgages, framed the shift as a logical evolution of the bank’s long-standing focus on complex lending. She noted that demand for HMOs is rising as investors try to “maximise returns,” adding that the bank wants newcomers to specialist property types to access its expertise through “a much simpler and faster application journey.”
Landlord mortgage strategy shifts as lenders streamline decision routes
The changes arrive as more owners of mortgaged properties search for lenders who reduce administrative drag at renewal. With refinancing volumes running 9% higher year on year, according to UK Finance’s autumn data release, investors are increasingly assessing lenders not just on rates but on processing efficiency.
Paragon’s announcement also aligns with a broader theme in the market: lenders are re-engineering their digital backbones to speed up specialist cases. In several regions, letting agents report that landlords are moving towards HMOs and MUBs to offset higher running costs and evolving licensing requirements. One Midlands-based agent observed in recent comments to trade press that “investors want a product where occupancy risk is spread, and HMOs are giving them that cushion.”
Paragon’s expansion recognises this behaviour. Documents are only requested when genuinely required, yet every case remains 100% underwritten – a point the lender stresses to reassure investors who prefer robust credit assessment over box-ticking bureaucracy.
Russell Anderson, Commercial Director for Mortgages, said the development aims to support “the next generation of landlords,” while still appealing to larger operators who know Paragon for its complex lending credentials.
Market outlook as investors eye portfolio growth
Although the wider market is adjusting to softer capital values through the year, yields on HMOs and small blocks have held relatively firm. Investors weighing expansion often point out that the rental uplift on well-run multi-occupancy homes can offset higher finance costs, particularly in university towns or areas with strong workforce migration.
Against that backdrop, a smoother lending path can make the difference between progressing a deal or walking away. Many portfolio owners are watching how quickly other lenders follow Paragon’s lead: a shift towards low-friction underwriting could reshape 2025’s pipeline, especially for those navigating tighter regulatory and licensing frameworks.
Editor’s view
Paragon’s move shows how competitive the specialist finance space has become – and how much value investors now place on certainty and speed. As lenders refine digital processes, expect more landlords to explore HMOs and MUBs in pursuit of stronger cash flow heading into 2026. The question is whether rivals will match this simplicity soon enough to keep pace.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 11 December 2025
Sources: Paragon Bank; UK Finance data; regional letting agent commentary.
Related reading: Buy-to-let mortgage limits raised as Paragon boosts support for landlords
