Paragon Bank launches 80% LTV buy-to-let  range for energy efficient properties

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  • Rates start at 3.99% for properties with energy rating A to C; market-leading rate on HMO product
  • Available for portfolio landlords for purchase and remortgage - fee free and with £350 cashback
  • 272% increase in privately rented homes with energy rating C or above, but 6 in 10 still below that rating

Paragon Bank has launched a range of 80% loan-to-value buy-to-let mortgages, including a market-leading rate for House in Multiple Occupation (HMO), specifically for properties with an energy performance rating of A to C.

The new range aims to encourage landlords to invest in energy efficient properties and increase the proportion of A-C rated properties in the private rented sector (PRS).

The number of properties in the PRS with an energy rating of between A-C has increased by 272% over the past decade to 1.8 million, but approximately six out of 10 homes in the sector are still at grades D or below1.

The five-year fixed rates start from 3.99% for purchase and remortgage and include free valuations, no product fees and £350 cashback. They are available for portfolio landlords on single self-contained properties and HMO.

Richard Rowntree, Paragon Bank Managing Director of Mortgages, said: “Landlords have made great strides in adding more energy efficient homes to the PRS - or upgrading properties to C or above standard - over the past decade. However, more needs to be done as the Government moves towards its net zero carbon target by 2050 and landlords have a key role to play in that.

“Our new range of products at 80% LTV for homes with an energy rating of C or above will be an incentive for landlords to add energy efficient homes to the sector, benefitting tenants through lower energy bills and the environment through reduced consumption.”

Under Government proposals, homes in the PRS will need a minimum EPC rating of C for new tenancies by 2025 and all homes in the sector will require this rating by 2028.

To support landlords upgrade existing properties with an EPC rating of D or below, Paragon launched its Green Further Advance product in February.

Richard Rowntree concluded: “If landlords are to improve the energy efficiency of PRS stock, they need the finance to enable them to do so. Making sure there are attractive options to add new stock, whilst recognising the efforts to upgrade existing properties, is an important element of this.” For more information and full product guides please visit

For further information contact:

Michael Clarke
Head of Media Relations
Tel: 07740090746

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551