Every now and again, a buy-to-let mortgage product comes along with a headline rate that makes investors sit up and pay attention.
Paragon’s limited-edition five-year fixed range, announced in April 2026, is a good current example.
At 75% LTV, rates start at 4.95% for single self-contained properties with an EPC rating of A to C. For properties with EPC ratings of D or E, the rate increases slightly. For HMOs and multi-unit blocks, rates start at 5.20%.
Paragon also has limited-edition five-year fixed products at 60% LTV, starting from 4.80% for single self-contained EPC A to C properties, again with slightly higher pricing for EPC D or E, and higher rates for HMOs and multi-unit blocks.
All perfectly legitimate.
All potentially useful.
And all worth looking at properly.
Because, as ever, the headline rate is only part of the story.
The rate is not the whole deal
The interesting thing about these products is not just the rate.
It is the structure.
The lower headline rates come with a higher product fee.
That is not unusual in the current market, and it is not a criticism. It is simply one of the ways lenders structure products.
A lower pay rate may help monthly cashflow.
It may help with the lender’s affordability calculation.
It may make a particular deal easier to get over the line.
But the fee still needs to be included in the maths.
A 5% product fee is not small.
On a £100,000 loan, that is £5,000.
On a £300,000 loan, that is £15,000.
On a larger loan, it gets more interesting still, usually in the “I might need to sit down” sense.
That does not mean the product is wrong.
It might be exactly the right product for the right deal.
But it does mean the investor needs to compare the full cost, not just the rate.
Why investors may still choose a higher-fee product
There are perfectly sensible reasons why an investor might choose a lower rate with a higher fee.
The monthly payment may be lower.
The rental stress test may work better.
The investor may want to preserve cashflow.
The property may only stack with a certain pay rate.
Or the investor may be more focused on short-to-medium-term affordability than the total cost over the whole period.
That is not automatically a mistake.
In fact, Paragon has openly said it has seen a trend in investors choosing higher-fee products to secure a lower pay rate.
That makes sense in the current market.
Affordability has been one of the big problems for buy-to-let investors over the last few years.
Not always because the deals are terrible.
Sometimes because the stress test says no, the lender says no, the calculator says no, and everyone goes off to have a cup of tea and wonder when property became quite so much fun.
So a lower pay rate can be useful.
But useful is not the same as automatically best.
The EPC angle matters too
Another thing worth noticing is the EPC pricing.
The best rates are generally for properties with EPC ratings of A to C.
Properties with EPC ratings of D or E are priced slightly higher.
Again, this is not a criticism. It is just the way more lenders are beginning to think.
Energy efficiency is becoming part of the finance conversation, not just the compliance conversation.
For investors, this matters.
A property that looks cheap to buy may not be quite so cheap if it needs money spending on heating, insulation, ventilation, damp, windows, roof repairs and all the other little delights older houses sometimes provide.
And, as every investor knows, “little delights” is often estate-agent speak for “bring a cheque book and a sense of humour”.
The mortgage rate is only one part of the deal.
The property itself still needs to work.
A low rate can still be expensive
This is where investors need to be careful.
A low buy-to-let mortgage rate can make a product look attractive.
But if the fee is high, the total cost over the fixed period may not be as attractive as the rate suggests.
Especially on smaller loans.
Sometimes a higher rate with a lower fee, or no fee, can be better overall.
Sometimes it cannot.
Annoyingly, this is where we have to do the maths.
The rate matters.
But so does the product fee, valuation cost, cashback, application fee, rental stress test, early repayment charges, loan-to-value, exit position and what happens when the fixed period ends.
I know.
It would be much more convenient if we could just pick the lowest rate and declare ourselves financial geniuses.
Sadly, that is not how it works.
Five years gives certainty, but not invisibility
A five-year fix can be useful.
It gives investors payment certainty for longer.
It may help with planning.
It may also help with affordability, depending on the lender’s rules and how the product is stressed.
But five years is still a long time to be committed to a product.
So investors need to think about their plan.
Are they likely to sell?
Are they likely to refinance?
Will they want to release equity?
Will the property need major works?
Is the rent likely to rise?
Could the deal still cope if costs increase?
A mortgage product should fit the strategy.
Not the other way round.
So was this a bad product?
No.
Not at all.
For the right investor, with the right property, the right loan size and the right plan, a lower-rate, higher-fee product can make perfect sense.
That is the key point.
It is not about whether one product is good or bad.
It is about whether it is right for the deal.
A low pay rate can be useful.
A higher fee can be worth paying.
But only if the numbers support it.
The question is not:
“What is the lowest rate?”
The better question is:
“What is the best overall mortgage for this property, this loan size, this structure and this plan?”
Those are very different questions.
And the second one is the one that matters.
What investors should check
Whenever you see a low buy-to-let mortgage rate, pause before getting too excited.
Ask what the product fee is.
Ask whether the fee is added to the loan or paid upfront.
Ask what the total cost is over the fixed period.
Ask whether the property type qualifies.
Ask whether the EPC rating affects the rate.
Ask what the stress test looks like.
Ask what the early repayment charges are.
Ask what happens at the end of the fixed period.
And then ask your broker to compare it properly against the alternatives.
Not the headline alternatives.
The real alternatives.
Because a slightly higher rate with a lower fee may be better.
Or it may not.
Unfortunately, “it depends” is the honest answer.
Which is irritating, but usually true.
Bottom line
A low buy-to-let mortgage rate is not automatically a bargain.
It might be.
But only once you have looked at the full cost, the product fee, the property criteria, the EPC rating, the stress test and the exit.
Paragon’s current limited-edition five-year fixed range is a useful example of how the market is working.
Lenders are offering different structures.
Investors are choosing between rate, fee, affordability and flexibility.
And that is perfectly fine.
But don’t be impressed by the lowest rate.
Do the maths.
Then speak to a broker who knows this market properly.
As ever, this isn’t advice. Don’t draw down loans or mortgages without taking advice from a good mortgage broker.
If you don’t have a mortgage broker, or you’d like a second opinion, I’ll be happy to introduce you to mine.
Just email me at:
and I’ll make the introduction.
Here’s to successful property investing.
Peter Jones
Author, property investor & ex-Chartered Surveyor
P.S. If you’d like help thinking through your buy-to-let strategy properly, you might find my Successful Property Investor’s Strategy Workshop useful.
You can find out more here:
