The range has six deals that are priced from the base rate plus 1.6%. They are available on a five-year term up to 75% loan to value (LTV).
Landlords can choose three fee options, which include 0.75%, 1% or 1.5%. Interest coverage ratios (ICRs) are calculated at the initial rate plus 2%.
Three deals are available for purchasing or remortgaging single self-contained properties, with three focused on HMOs and MUBs. The SSC option comes with no application fee, while £299 is payable when financing HMOs or MUBs.
Paragon Bank has also reduced a selection of its two-year fixed rate BTL mortgages for HMOs and MUBs, with initial rates beginning at 3.39%, and deals are available at 75% and 65% LTV, with the former subject to a £299 application fee and the latter a £150 application fee. Nil-, 3% and 5% fee options are available.
James Harrison, BTL 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.
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“As we saw yesterday, base rate was reduced from 4% 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.”
