Paragon Bank is celebrating 30 years since it launched its very first mortgage for landlords—an early move that helped lay the foundations of what is now a £300 billion buy-to-let sector. Back in 1995, a full year before the term “buy-to-let” was even coined, Paragon issued its first buy to let mortgage: a £31,150 loan at 70% LTV on a modest £45,000 property. The rest, as they say, is history.
Three decades later, the specialist lender has written over 240,000 buy-to-let mortgages, totalling £33 billion, and supported more than 300,000 landlord customers across the UK. And with the rental market under increasing pressure, Paragon’s long-term commitment is more relevant than ever.
From recession roots to resilient market
Reflecting on the early days, Russell Anderson, Commercial Director of Mortgages at Paragon (pictured), recalled how the 1990s economic downturn created the conditions for the rental sector to thrive:
“Looking back to the mid-90s, the UK was just emerging out of a deep recession that highlighted the need for a housing tenure that provided a home for those who didn’t want to or couldn’t buy a home.”
That vision proved prescient. Working closely with ARLA (now Propertymark) and key intermediaries, Paragon helped formally launch the buy-to-let concept in September 1996. Today, the market stands as a pillar of the UK’s housing landscape, with over two million active loans and a consistently strong performance record. In fact, buy-to-let loans have outperformed owner-occupier mortgages in terms of arrears for 24 of the last 25 years, demonstrating long-term resilience.
As Anderson noted, “Buy-to-let is now a mature, seasoned product that has proven its resilience through many economic cycles, as well as significant regulatory change.”
Evolving to support landlords, old and new
Over the years, Paragon has continually evolved to meet landlords’ changing needs. Initially focused on professional and portfolio landlords—particularly those investing through limited companies or in more complex properties such as HMOs—the lender has expanded to assist smaller-scale landlords looking to grow sustainably.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, summed it up succinctly: “Buy-to-let is in our DNA, launching our first landlord mortgage a year before the term was even invented. We pioneered buy-to-let in the UK and our landlord customers have provided a home to millions of tenants over the last three decades.”
The lender’s recent efforts have included a new bespoke digital mortgage platform aimed at speeding up and simplifying the application process for brokers. Sedgwick called this part of a broader digitisation push to support “a broader spectrum of landlords—big and small, old and new—to invest in much needed homes for renters.”
This renewed focus on accessibility comes at a time when landlords are contending with heavier regulation, increased taxes, and mixed political rhetoric. But with support from experienced lenders like Paragon, many are finding ways to adapt, grow, and continue providing housing in an increasingly pressured market.
Three decades on, landlords remain crucial to housing delivery
Paragon’s story is ultimately one of innovation, longevity, and partnership with landlords. At a time when the private rented sector continues to face legislative change—from EPC requirements to rent reform bills—this milestone highlights the enduring role landlords play in the UK’s housing mix.
What began as a bold move in the wake of a recession is now a major contributor to national housing supply. And as demand for high-quality, flexible rental homes rises with the UK’s growing population, the work of experienced landlords—backed by long-standing institutions like Paragon—remains essential.
As Sedgwick put it: “We’re continuing to move forward and evolving for the benefit of our customers and partners… building a reputation for one of the leading specialist lenders.”
In a housing system under strain, it’s a timely reminder that well-supported landlords are not part of the problem—they’re a vital part of the solution.
