Paragon Bank

Paragon Bank is the lending arm of Paragon Banking Group PLC, a FTSE 250 company and one of the UK's most established specialist financial services groups. The group has been providing property finance for over 35 years, building one of the deepest wells of property lending expertise in the UK market. Paragon's origins lie in the buy-to-let mortgage market, where it was one of the pioneering lenders in the 1990s, and this heritage in property investment finance continues to define its competitive advantages in the commercial property space.

Paragon Banking Group is listed on the London Stock Exchange and has a market capitalisation that places it firmly among the UK's most significant specialist financial services companies. This listed status provides strong governance, transparency, and access to capital markets, while the group's focused strategy — concentrating on specialist lending rather than attempting to compete across the full range of banking services — ensures that its resources and expertise are directed precisely where they deliver the most value.

Paragon Bank's commercial lending division provides finance for the acquisition, refinance, and equity release of commercial and semi-commercial investment properties. The bank's particular strength lies in serving professional property investors and portfolio landlords — borrowers who hold multiple properties as a business activity and require a lender that understands the specific dynamics of portfolio property investment. This focus on professional investors is reflected in every aspect of Paragon's proposition, from its underwriting criteria (which are designed to work with, rather than against, the realities of portfolio property ownership) to its product features (which accommodate the ongoing management and growth of investment portfolios).

Loan sizes with Paragon range from £50,000 to £25 million for individual transactions, with the bank able to accommodate larger aggregate exposures for established portfolio clients. Loan-to-value ratios of up to 75% are available, with terms of up to 25 years. The bank offers fixed-rate options for periods of two to five years and variable rates linked to Bank of England Base Rate. For portfolio landlords, Paragon can provide facilities that cover multiple properties, simplifying administration and providing the flexibility needed to manage and grow a commercial property portfolio.

Paragon's underwriting expertise in portfolio lending is a genuine competitive advantage. The bank has developed sophisticated portfolio assessment methodologies that evaluate the strength of the borrower's overall property holdings rather than assessing each property in isolation. This holistic approach considers total portfolio rental income, aggregate debt levels, portfolio diversification (by property type, location, and tenant), the borrower's track record of portfolio management, and overall financial strength. For experienced portfolio landlords, this assessment methodology typically delivers more favourable outcomes than lenders who apply individual property criteria to each asset without considering portfolio-level strength.

The bank's criteria for commercial buy-to-let are particularly well-developed. Paragon understands the specific income patterns, cost structures, and management requirements of commercial investment properties and has built its underwriting criteria around these realities. The bank's rental coverage ratios, property condition requirements, and tenant assessment criteria all reflect practical experience in commercial property investment rather than theoretical models imported from residential lending. This practical understanding extends to the bank's approach to property management, void periods, and tenant turnover — factors that can trip up less experienced lenders but are well understood by Paragon's specialist team.

For semi-commercial properties — assets with both commercial and residential elements — Paragon has specific expertise in assessing the blended income stream and understanding the particular valuation challenges these properties present. The bank works with experienced valuers who understand how to assess mixed-use assets, and its underwriters are comfortable making lending decisions based on combined commercial and residential income — a capability that is essential for this property type but not universal among commercial lenders.

Paragon finances a broad range of commercial property types including offices, retail units, industrial properties, warehouses, mixed-use buildings, and semi-commercial properties. The bank also considers certain specialist property types where the underwriting team has sufficient expertise to assess the particular risks involved. For each property type, Paragon has developed specific criteria and assessment approaches that reflect the unique characteristics and risks of that asset class.

Paragon Bank's typical interest rates for commercial mortgages start from around 5.5%, with rates varying based on LTV, property type, portfolio size, and borrower strength. The bank's pricing is designed to be competitive for its target market of professional property investors, and Paragon often achieves particularly strong pricing for experienced borrowers with substantial, well-diversified portfolios. Arrangement fees are typically 1% to 2% of the loan amount, with valuation and legal costs charged separately.

The application process with Paragon reflects the bank's specialist focus. Initial enquiries are assessed by the commercial lending team, with indicative terms typically provided within 48 hours. The bank's broker development managers provide specialist support throughout the process, helping to structure applications and anticipate any potential issues. For portfolio transactions, Paragon can provide a portfolio-level assessment at an early stage, giving borrowers confidence in the terms available before committing to formal applications across multiple properties.

Paragon's commitment to the intermediary channel is deep and longstanding. The bank works exclusively through brokers and intermediaries, and has built strong relationships with the specialist broker community through consistent service quality, responsive support, and competitive products. This broker-only distribution model ensures that borrowers benefit from professional advice alongside Paragon's specialist lending capabilities.

For Commercial Mortgage Broker clients, Paragon Bank is our recommended lender for professional property investors and portfolio landlords seeking commercial mortgage finance. The bank's unrivalled expertise in portfolio lending, combined with competitive pricing and specialist underwriting, consistently delivers the best outcomes for experienced investors with multiple properties. Our established relationship with Paragon's commercial lending team enables us to access the bank's most competitive terms and to present portfolio cases in the format that Paragon's credit team finds most effective.