Paragon and HTB unveil competitive BTL mortgage deals

Paragon Bank and Hampshire Trust Bank (HTB) have introduced mortgage products tailored to landlords seeking financing and flexible lending options.

These offerings cater to diverse investment strategies, from single residential properties to mixed-use assets.

Paragon has rolled out a limited-edition five-year fixed-rate BTL mortgage, boasting its most competitive rate since August 2022.

Starting at 4.29%, this deal targets landlords purchasing or remortgaging single self-contained (SSC) properties with Energy Performance Certificate (EPC) ratings of A to C.

For SSC properties with EPC ratings of D or E, the rate is 4.34%, while houses in multiple occupation (HMOs) qualify for a 4.64% rate.

Suit a wide range of landlords

These mortgages, available up to 65% loan-to-value (LTV), come with a 5% product fee, though a fee-free option is offered at a rate one percentage point higher.

A £150 application fee applies, alongside a 5% interest coverage ratio (ICR).

The products are accessible to landlords operating as individuals or through limited companies across England, Scotland and Wales.

James Harrison, Paragon’s mortgages product manager, said: “We’ve launched these limited-edition products to provide landlords with more choice and offer solutions that suit a broader spectrum of customers.

“Offered at a lower loan-to-value of 65%, these products will be particularly appealing to those that can put down a slightly larger deposit to benefit from lower rates.”

HTB enhances semi-commercial lending

Meanwhile, Hampshire Trust Bank (HTB) has refined its specialist mortgages proposition, allowing standard BTL rates to be applied to qualifying semi-commercial loans exceeding £5 million.

It says that is when the commercial component constitutes no more than 20% of the property.

This adjustment addresses growing demand for residential-heavy mixed-use investments, such as flats above retail units or takeaways.

The change enables brokers to structure deals with minimal commercial exposure at competitive rates, provided the commercial income is not needed to meet the interest cover ratio.

Demand for mixed-use property

HTB’s says its deal-by-deal underwriting approach ensures tailored support, making it easier for landlords to capitalise on properties offering yield, diversification and long-term value.

Andrea Glasgow, the lender’s sales director for specialist mortgages, said: “We’ve seen a clear rise in demand for mixed-use property, particularly where the commercial part is modest but contributes to a strong overall return.

“These are often flats above shops or mixed-use assets where the commercial use is stable and predictable, such as a convenience store or takeaway.”

She adds: “The structure is sound, the return is strong, and the pricing should reflect that. This change brings more flexibility.”

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