Paragon has announced that it is expanding its specialist buy-to-let mortgage range with new short term finance products designed to help landlords planning to purchase and improve property.
According to the lender, the range includes three different options to cover standard, light and heavy refurbishment projects. This makes it suitable for landlords considering simple improvements, those undertaking refitting and modernisation work and those carrying out alterations that need planning permission, permitted development rights or building regulations. The range also extends to projects involving a change of use for HMOs and multi-unit conversions.
All options offer loan amounts of up to £1m, with maximum loan to value (LTV) ratios ranging from 65% to 75% and terms from one month to 12 months depending on the option selected. Loans are interest only and come with a choice of either monthly payments or rolled up interest.
Landlords applying for standard and light finance with a maximum term of six months can also opt for a simultaneous short term finance and buy-to-let mortgage application on the same property. These applications will be assigned the same underwriter to improve continuity and customers will benefit from reduced mortgage application fees.
John Heron, director of mortgages at Paragon said, “Short term finance is an important part of the funding mix especially for professional landlords looking to grow or reconfigure their property portfolio.
As landlord tax changes begin to bite, property refurbishments can offer an attractive route to boost capital value and improve yield.”