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Paragon brings out refurb-to-let range

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  • 12/06/2024
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Paragon brings out refurb-to-let range
Buy-to-let (BTL) specialist lender Paragon has brought a refurb-to-let proposition, which will allow landlords to access finance to upgrade their properties.

Paragon’s two refurb-to-let products are aimed at properties that need some modernisation but not structural changes.

This is traditionally defined as work where no planning permission or building regulations are required.

The products are suitable for small house in multiple occupation (HMO) adaptations and can be used for single self-contained properties, HMOs and multi-unit blocks (MUBs) in England, Scotland and Wales.

The deals are available up to 75% loan to value (LTV), initially over a 1-6-month term, with monthly product rates from 0.75%.

Landlords will then switch to a BTL mortgage from available Paragon products.

Borrowers choosing a refurb-to-let product can apply for a BTL mortgage at the same time, which will cut processing time and not incur additional application fees.

Louisa Sedgwick (pictured), 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.”

She added: “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.”

Paragon simplifies its mortgage range by removing the differentiation between portfolio and non-portfolio products.

The lender said that the consolidation of the ranges means it can inform the broker which deal is suitable for their client earlier in the process.

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