Paragon expands buy-to-let mortgage options with flexible two-year trackers

Paragon has broadened its buy-to-let mortgage offering by adding six new two-year Bank Base Rate tracker products. These new deals respond to broker feedback and increased landlord demand for more flexible mortgage options. The products complement Paragon’s existing five-year tracker mortgages linked to the Bank of England Base Rate and are available up to 75% loan-to-value (LTV).

A key feature of these new deals is the absence of early repayment charges (ERCs), allowing borrowers to switch or refinance without penalty during the term. Pricing for single self-contained homes starts at Bank Base Rate plus 1.35%, which currently equates to 5.10%. For Houses in Multiple Occupation (HMOs) and multi-unit blocks (MUBs), rates begin at 5.45%, equivalent to Base Rate plus 1.70%.

Landlords can select from three fee structures—0.75%, 1%, or 1.50%—and the products are available for both purchases and remortgages. Interest coverage ratios are assessed at the initial rate plus two percentage points to ensure affordability.

For landlords with larger portfolios, Paragon allows inclusion of any tracker product within a multi-property application covering between four and 99 units. This approach reduces legal costs by requiring a single certificate of legal advice and removes application fees on HMO and MUB cases.

James Harrison, Paragon’s buy-to-let product manager, commented: “Adding two-year products to our range of Bank Base Rate tracker mortgages further increases choice for landlords, with a range of fee options and no ERCs offering customers a balance of flexibility and certainty.”

NatWest reduces fixed-rate buy-to-let mortgage pricing

Moneyfactscompare.co.uk has highlighted a recent reduction in NatWest’s buy-to-let fixed rates. The lender’s five-year deal at 60% LTV has been cut by 0.08%, now priced at 3.92% until 30 April 2031.

Caitlyn Eastell, personal finance analyst at Moneyfactscompare, noted: “NatWest has reduced some of its buy to let fixed rates by up to 0.11%. The five-year deal at 60% loan-to-value has seen a slightly smaller 0.08% cut and is now priced at 3.92% until 30 April 2031. Borrowers may note that there is a reasonable £995 product fee, which is then offset by its free valuation incentive, so this may still be an attractive choice for those looking to keep costs low. However, this deal is only available online which some may want to consider.”

The NatWest product is available to purchase customers across Great Britain and Northern Ireland, allows overpayments, and includes a free valuation.

RAW Capital Partners introduces automated valuation models

Specialist lender RAW Capital Partners has launched automated valuation models (AVMs) on eligible buy-to-let mortgage cases. This innovation enables valuations to be completed before an Agreement in Principle is issued, aiming to speed up decisions on lower-risk applications while maintaining a bespoke approach for more complex cases.

AVMs apply to loans up to 60% LTV secured on completed buy-to-let investments, with maximum advances capped at £300,000 in London and £200,000 elsewhere. This enhancement is available to both UK and overseas clients, following RAW’s expansion into lending for UK residents from December 2025.

Tim Parkes, RAW’s chief executive, said: “Speed and certainty are increasingly important for brokers and borrowers, particularly at the early stages of an application. Introducing automated valuations on more vanilla cases allows us to provide clarity more quickly, without compromising the flexibility that defines our proposition.”

What this means for landlords

The introduction of new two-year tracker products by Paragon offers landlords greater flexibility, especially with no early repayment charges, which can be beneficial in a changing interest rate environment. NatWest’s reduced fixed rates provide a competitive option for landlords seeking longer-term certainty, though the online-only application and product fee should be considered. RAW’s use of automated valuations promises faster mortgage decisions for straightforward cases, potentially reducing waiting times and improving the overall application experience.

These developments reflect lenders’ efforts to adapt to landlord needs by offering a wider range of products and more efficient processes, supporting portfolio growth and investment decisions in the private rented sector.

Suggested internal link anchors

• buy to let mortgage
• Bank Base Rate tracker
• early repayment charges
• loan-to-value
• Houses in Multiple Occupation
• multi-unit blocks
• interest coverage ratios
• fixed-rate buy to let mortgage
• automated valuation models
• Agreement in Principle
• portfolio landlords
• mortgage application process

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/