Paragon Bank has reduced rates and simplified the application process for buy-to-let further advances, after feedback from brokers.

The lender has moved further advance applications onto its enhanced mortgage originations platform, bringing them into line with its wider buy-to-let mortgage process.

Paragon said the change would give brokers the same layout and application journey used for other buy-to-let cases.

Where no property inspection is required, Paragon said offers could be issued in as little as 48 hours, with landlords able to receive funds within 24 hours of the lender receiving a signed offer acceptance.

The lender has also reduced the minimum further advance loan size to £2,000 and cut rates across the range by 20bps.

Rates now start at 6.25% for five-year fixed-rate mortgages up to 75% loan-to-value on single self-contained properties.

Two-year fixes are available from 6.40%, while equivalent products for HMOs and MUBs are priced 20bps higher than the single self-contained property range.

Paragon said the further advance process would use automated valuation models alongside other data sources to reduce the need for in-person revaluations.

The bank is also using new and existing data sources to indicate how much additional borrowing a landlord may be able to access. Where this is not possible, landlords can still submit an application for assessment by Paragon’s underwriters.

The lender expects demand for further advances to grow as landlords prepare for forthcoming changes to minimum EPC requirements for rental property.

Paragon said about 40% of its further advance loans are currently used to fund property improvement work.

Research carried out for the bank by Pegasus Insights found that 62% of landlords expect to carry out work to upgrade property to meet the minimum requirement of EPC C by October 2030. Of those, 22% expect to use external finance, including further advances, to fund the work.

Andrew Smart (pictured), head of mortgages transformation at Paragon Bank, said: “We’ve moved our further advance proposition onto our enhanced origination platform, with brokers benefiting from the same ease of use, clear and easy layout and intuitive design.

“This makes the process simpler for brokers and their landlord clients, providing quicker release of funds where we don’t need to inspect the property.

“A substantial proportion of the further advance business we write supports home providers to improve their properties.

“Making this finance quicker and easier to access will be particularly beneficial for those investing to remain compliant with new regulations, such as the forthcoming changes to the PRS Minimum Energy Efficiency Standards.”