Paragon Bank is one of the UK’s leading specialist lenders and a FTSE 250 company. While it is a fully licensed bank offering savings accounts to the general public, in the mortgage world, it is best known for Buy-to-Let lending.
Paragon generally do not offer standard residential mortgages, their mortgage products are designed for landlords and property investors, particularly those with large portfolios or complex setups.
To compare Paragon’s Buy-to-Let range with other lenders across the market, you can use our free mortgage comparison tool below:
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Lender Details
Product Details
About Paragon Bank
Based in Solihull, West Midlands, Paragon has been a pioneer in the UK Buy-to-Let market since the 1990sm originally trading as Paragon Mortgages and Mortgage Trust.
In 2014, it obtained a banking licence, becoming Paragon Bank. This allowed it to launch savings accounts to fund its lending, moving away from the wholesale funding model. This shift brought significant stability, allowing them to support landlords consistently even during credit crunches.
Their lending philosophy is a mix of technology and expertise. While they have automated systems for simple cases, they are known for their manual underwriting of complex "portfolio landlords" with 4 or more properties.
Mortgage & Finance Products
Paragon’s lending focus is strictly on property investors and commercial customers in England, Wales, and Scotland.
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Buy-to-Let (BTL) Mortgages:
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Portfolio Landlords:They are one of the best lenders in the UK for landlords with large portfolios even those with 50+ properties. They look at the "whole portfolio" profitability rather than just the single property purchase
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Limited Companies: They lend to SPVs (Special Purpose Vehicles) and trading limited companies
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HMOs & MUFBs: Finance for student lets, Houses in Multiple Occupation, and multi-unit freehold blocks of flats
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Green Mortgages: They offer discounted rates for properties with energy efficiency ratings (EPC) of A, B, or C
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Development Finance: Loans for developers building new housing schemes
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SME Lending: Asset finance and business loans for UK companies
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Pros and Cons of Paragon Bank
Here is a balanced overview of choosing Paragon:
Pros:
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Portfolio Experts: Paragon has dedicated teams specifically for checking large portfolios efficiently
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Stability: As a FTSE 250 bank with retail savings deposits, they are a very stable lender that doesn't tend to pull products overnight when the market gets tough
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Flexibility: They accept complex corporate structures, expat landlords, and short-term lets
Cons:
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Intermediary Focused: For mortgages, they operate primarily through brokers. You generally cannot apply for a Paragon mortgage directly on their website
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Slower than high street lenders: Because they check portfolios thoroughly, the "time to offer" can be slower than an automated lender
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Strict Criteria: They are professional lenders. They often require landlords to have a minimum income separate from property, or strict experience levels for HMOs
Customer Service and Reviews
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Mortgage Customers: Reviews are often via brokers, but Paragon is widely respected in the industry. They frequently win "Best Buy-to-Let Lender" awards for their consistent service to professional landlords
How to Apply
For Mortgages: You generally must use a mortgage broker. Paragon’s mortgage products are complex so they rely on intermediaries to package the deal correctly. We can do this on your behalf with Paragon, or another lender that may be more suitable. Simply get started today for a product comparison and advice.