Paragon Bank has launched six bank base rate tracker mortgages designed to give buy-to-let landlords more control over their financing choices.
The products track the Bank of England's base rate, which dropped from 4.00% to 3.75% yesterday, and carry no early repayment charges. Landlords can switch to alternative products at any point without penalty.
Rates start at base rate plus 1.60% and are available on five-year terms at up to 75% loan-to-value. Three fee options are available at 0.75%, 1.00% or 1.5%, while interest coverage ratios are calculated at the initial rate plus 2%.
Three products cover single self-contained properties for purchase or remortgage, with no application fee. The remaining three focus on houses in multiple occupation and multi-unit blocks, which carry a £299 application fee.
Paragon has also reduced selected two-year fixed rate buy-to-let mortgages for HMOs and multi-unit blocks by 15 basis points. Initial rates start at 3.39%, with products available at 75% and 65% LTV. Application fees are £299 for the former and £150 for the latter. Nil, 3.00% and 5.00% fee options are available.
"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," said James Harrison, buy-to-let product manager at Paragon Bank.
"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," she said.
"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."
