Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Paragon Bank Launches Two-Year BBR Tracker Mortgages for Landlords

Paragon Bank has introduced new two-year bank base rate (BBR) tracker mortgage options for landlords, with rates starting from BBR plus 1%. The new products are available for single self-contained properties (SSCs), houses in multiple occupation (HMOs), and multi-unit blocks (MUBs).

For SSC properties at 75% loan to value (LTV), the two-year tracker is priced from BBR plus 1%, which is currently 4.75%, and comes with a 2% product fee. This product includes a free mortgage valuation, no application fee, and no early repayment charges.

For HMOs and MUBs at the same LTV, the two-year tracker starts from BBR plus 1.35%, also with a 2% fee. These products also offer no early repayment charges and include a free valuation.

Fixed Rate Reductions

Paragon Bank has also reduced rates on selected two-year fixed rate mortgages by 15 basis points. Within the SSC range, rates begin at 3.4% for properties with an EPC rating of A-C at a 5% fee level, or 3.45% for properties with lower energy efficiency. For HMOs and MUBs, pricing starts from 3.55% with a 5% fee, 4.55% with a 3% fee, and 6.05% on a no-fee basis. These fixed rate products include free valuations and have application fees set at £299.

All of Paragon’s fixed rate products have early repayment charges of 3% in each of the first two years, after which they revert to Paragon Bank’s standard variable rate (SVR), currently 7.35%, less 1.25%.

At the end of June, Paragon Bank launched a cashback offer for landlords.

These changes expand the options available to landlords and letting agents, particularly those managing SSCs, HMOs, and MUBs, and may be relevant for inventory clerks monitoring property portfolios.