Paragon launches tracker buy-to-let mortgage range

Paragon Bank has launched a new Bank Base Rate tracker buy-to-let mortgage range, designed to give landlords greater control and flexibility.

The range tracks the Bank of England’s Base Rate, which reduced yesterday from 4.00% to 3.75%, with no early repayment charges so that landlords can switch at any point without penalty. 

The six products in the range start at Base Rate plus 1.60% and are available on a five-year term at up to 75% LTV. Landlords can choose from three fee options – 0.75%, 1.00% or 1.5% - and interest coverage ratios are calculated at initial rate plus 2%. 

Three products are available for purchasing or remortgaging single self-contained properties, with three focused on houses in multiple occupation (HMOs) and multi-unit blocks (MUBs). The SSC option comes with no application fee, while £299 is payable when financing HMOs or MUBs. 

In addition, Paragon has also reduced a selection of its two-year fixed rate buy-to-let mortgages for HMOs and MUBs by 15bps. Initial rates start at 3.39% and Paragon has products available at 75% and 65% LTV, with the former subject to a £299 application fee and the latter a £150 application fee. Nil, 3.00% and 5.00% fee options are available. 

James Harrison, buy-to-let product manager at Paragon Bank, said: “With a range of fee options and no ERCs at any point throughout the five-year term, our new Bank Base Rate tracker mortgages give landlords certainty, with the flexibility to finance their investments with the products that best meet their needs. 

“As we saw yesterday, Base Rate was reduced from 4.00% to 3.75% and there’s an expectation that the Bank of England will reduce it further in 2026. This will make this product particularly competitive and a great option for landlords purchasing or remortgaging SSCs, HMOs or MUBs.” 

Louisa Sedgwick, managing director of mortgages at Paragon Bank, added: “We’re excited to bring these innovative products to market at a time when we’re in a downward Base Rate cycle. They offer landlords the flexibility to track Base Rate and benefit from any reduction in the rate, but also the ability to switch if they would prefer to lock in a fixed-rate later without penalty.”