Paragon Bank has launched a new refurb-to-let proposition for landlords seeking funds to upgrade their properties.
The two refurb-to-let products are designed for properties requiring some modernisation but not structural changes, generally defined as works where no planning permission and building regulations are required. The products are also suitable for small houses in multiple occupation (HMO) adaptations.
Available at up to 75% loan to value (LTV), initially over a one-to-six-month term, monthly product rates start from 0.75%. Following the term, landlords switch to a buy-to-let mortgage, selecting from any appropriate Paragon product.
Landlords opting for refurb-to-let products also apply for a buy-to-let mortgage at the same time, reducing processing times and not incurring any additional application fees.
The products are available for single self-contained properties, as well as HMOs and multi-unit blocks in England, Scotland and Wales.
Louisa Sedgwick, commercial director for mortgages at Paragon Bank, said: “We’re really excited to launch our new refurb-to-let proposition. Our refurb-to-let product is tailor-made for landlords looking to update their property, with a choice of rates and terms available, plus the ability to apply for a buy-to-let application at the same time
“Upgrades could focus on improving the sustainability of properties or making general improvements that result in a nicer living environment for tenants.
“We also know that some landlords and brokers are sometimes reluctant to take out bridging finance, so this product is a great alternative. We’ll assess Refurb-to-Let applications alongside buy-to-let applications so landlords will benefit from a faster turnaround and the expertise of the same underwriter working on both elements.”
