Paragon Bank has launched a new set of limited-edition buy-to-let mortgage products, offering landlords their lowest five-year fixed rate since August 2022. The new deals, which start at just 4.29%, are aimed at both individual landlords and those operating through limited companies across England, Scotland, and Wales.
The fresh product range promises attractive rates and flexible options, providing welcome support to landlords looking to grow or remortgage their portfolios at a time when the cost of borrowing remains a crucial consideration.
Landlords benefit from lowest rates and flexible fee options
The new five-year fixed rate starts at 4.29% for landlords purchasing or remortgaging Single Self-Contained (SSC) properties with an EPC rating between A and C, offering a significant saving compared to many recent products on the market. Properties rated EPC D or E can secure a five-year fix at 4.34%, while HMO properties are eligible for a rate of 4.64%.
All mortgages are available up to 65% loan-to-value (LTV) and come with a 5% product fee. However, recognising different needs within the landlord community, Paragon is also offering nil-fee options, priced one percentage point higher than the corresponding fee-based products.
The new range carries a £150 application fee and uses a 5% interest coverage ratio (ICR), ensuring the deals remain both accessible and competitive.
Supporting new and experienced landlords alike
James Harrison, Mortgages Product Manager at Paragon Bank, explained the thinking behind the launch: “We’ve launched these limited-edition products to provide landlords with more choice and offer solutions that suit a broader spectrum of customers. Offered at a lower loan-to-value of 65%, these products will be particularly appealing to those that can put down a slightly larger deposit to benefit from lower rates.”
He added: “Our expertise means that we’re sometimes seen as an HMO or multi-unit block lender. While it is true that we do have lots of experience in this space and work with established landlords, we also support newer entrants to the market who may be growing their portfolios with more simple propositions, such as single self-contained properties.”
Portfolio growth
In an environment where lending criteria and rates are under constant scrutiny, Paragon’s new five-year fixes could represent an excellent opportunity for landlords seeking security and value. With the rental market still experiencing strong tenant demand — despite regulatory pressures — products offering low fixed rates, flexible options, and specialist support are vital tools for investors.
Landlords who can take advantage of the lower LTV criteria and energy-efficient property incentives could see significant financial benefits over the long term. As the sector continues to adapt, access to competitively priced mortgage solutions like these will be key to maintaining healthy, resilient rental portfolios.
