The total amount portfolio landlord customers can borrow with the lender across their portfolio has increased from £5m to £10m, while the maximum loan on an individual property has risen from £2m to £4m.
In addition, the maximum loan amount has increased across several loan-to-value (LTV) bands for both portfolio and non-portfolio landlords.
These include the 80% LTV tier upped from £500,000 to £750,000, 75% LTV from £750,000 to £1m, 70% LTV from £1m to £2m and 65% LTV from £2m to £4m.
Richard Rowntree, managing director of Paragon Bank, said: “We want to ensure we can support our landlord customers as they grow their business and thrive.
“A key element of this is creating the financial headroom to facilitate that growth and giving landlords the confidence that they can add new properties to their portfolios.
“In addition, we want to support landlords as they pivot their portfolios to adjust for societal changes, such as increased levels of working from home and the desire for more space.
“That translates into greater demand for larger homes, which is one of the reasons why we have increased our maximum loan amount on an individual property.
“We’re confident these changes will be welcomed by landlords and mortgage intermediaries.”
