The total amount a portfolio landlord, defined as someone with four or more mortgaged BTL properties, has increased from £5m to £10m.
The maximum loan for an individual property has gone up from £2m and £4m.
Paragon has also increased the maximum loan amount across 65 to 80 per cent loan to value (LTV) bands for both portfolio and non-portfolio landlords.
At the 65 per cent LTV band, the maximum loan has doubled to £4m while for 70 per cent LTV, it has increased from £1m to £1.5m.
In the 75 per cent LTV band, borrowers can now access up to £1m, up from £750,000, and borrowers at the 80 per cent LTV band can now secure £750,000 in loans, up from £500,000.
The changes in response to rising property prices and are expected to support landlords as they expand their portfolio and rebalance towards larger properties, reflecting changing tenant demand.
Paragon Bank’s managing director of mortgages Richard Rowntree (pictured) said: “We want to ensure we can support our landlord customers as they grow their business and thrive. A key element of this is creating the financial headroom to facilitate that growth and giving landlords the confidence that they can add new properties to their portfolios.”
He added that Paragon wanted to support landlords to pivot portfolios to adjust to societal changes, such as working from home and desire for more space.
He said: “That translates into greater demand for larger homes, which is one of the reasons why we have increased our maximum loan amount on an individual property. We’re confident these changes will be welcomed by landlords and mortgage intermediaries.”