Paragon has introduced a new range of bank base rate tracker buy to let mortgages, offering landlords greater flexibility amid fluctuating interest rates. These products track the Bank of England base rate and notably include no early repayment charges, allowing landlords to exit without penalty. Meanwhile, Aldermore has cut rates on several buy to let deals and integrated limited edition landlord products into its core range, providing more options for landlords seeking competitive mortgage terms.

Paragon’s new base rate tracker mortgages

Paragon’s launch of six base rate tracker buy to let mortgages is a significant development for landlords navigating the current interest rate environment. These products track the Bank of England base rate and come with no early repayment charges (ERCs) throughout the five-year term. This feature offers landlords the flexibility to refinance or repay their mortgage early without incurring penalties, which is particularly valuable given the potential for further base rate changes.

James Harrison, Paragon’s BTL product manager, explained that the new mortgages provide landlords with certainty and flexibility, allowing them to select fee options that best suit their investment needs. The range includes mortgages starting at base rate plus 1.60%, available on five-year terms with up to 75% loan to value (LTV).

Product details and fee options

The six products are split evenly between single self-contained (SSC) properties and more complex assets such as houses in multiple occupation (HMOs) and multi-unit blocks (MUBs). Borrowers can choose from three fee options: 0.75%, 1.00%, or 1.5%. Interest Coverage Ratios (ICR) are assessed at the initial rate plus 2%, which is a standard approach to ensure affordability.

There is no application fee for SSC mortgages, while landlords financing HMOs or MUBs will pay a £299 application fee. The range covers both purchases and remortgages, providing landlords with flexible options depending on their circumstances.

Adjustments to fixed rate buy to let mortgages

Alongside the tracker launch, Paragon has reduced rates on selected two-year fixed rate buy to let mortgages for HMOs and MUBs by 15 basis points. Rates now start from 3.39%, with products available at both 75% and 65% LTV. Application fees vary, with £299 for higher LTV products and £150 for the 65% LTV range. Fee options include nil, 3.00%, and 5.00%.

Aldermore’s revised buy to let offering

Aldermore is reshaping its buy to let mortgage range by moving several limited edition landlord products into its core offering and reducing rates for existing customers seeking to switch. Selected limited edition deals for new borrowers will be withdrawn and replaced with equivalent core products.

The lender has cut core range two-year fixed rates by up to 0.40% and five-year fixed rates by as much as 0.45%. These reductions include products at 80% LTV and lending for multi-unit freehold and HMO properties held across multiple assets.

Options for individual and company landlords

Two five-year fixed products with a 1.50% fee and a £1,999 charge will remain available as limited editions. For landlords with single residential investment properties, Aldermore has reduced two-year fixed rates by up to 0.10%, with rates starting from 5.89%. Five-year fixed rates have been cut by up to 0.15%, now available from 5.64%.

Jon Cooper, Aldermore’s director of mortgages, stated that the lender aims to provide solutions that support a wide range of customer circumstances, giving landlords more options tailored to their needs.

Implications for landlords and agents

These developments from Paragon and Aldermore offer UK landlords and letting agents additional mortgage options amid an uncertain interest rate environment. The introduction of base rate tracker mortgages without early repayment charges by Paragon is particularly relevant for landlords seeking flexibility to respond to future rate changes without incurring penalties.

Meanwhile, Aldermore’s rate reductions and product restructuring may encourage landlords to review their existing mortgage arrangements or consider switching lenders to benefit from improved terms. The availability of products for HMOs, multi-unit blocks, and single residential properties reflects the diverse needs of landlords across different property types.

Trusted Partners Hub launching in 2026

The Landlord Association (TLA) is launching a new Trusted Partners Hub in the first quarter of 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Service providers specialising in legal, trades, insurance, financial, mortgage, tenant screening, and other relevant sectors are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.