Paragon adds Green Home Grant products and completes £4m deal

The four deals are for portfolio landlords and are available over two and five-year terms at up to 75 per cent loan to value (LTV), with rates starting from 3.35 per cent.

They have no application fee, no product fee and include a free valuation.

To be eligible, landlords must have been accepted for a Green Homes Grant under the government scheme, which covers two-thirds of the eligible improvements, up to a maximum contribution of £5,000.

The product can be used to fund the remainder of the work.

The mortgages are available in England on houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), as well as single self-contained properties (SSCs).

Loan values are up to £750,000 at 75 per cent LTV, £1m at 70 per cent LTV and £2m on 65 per cent LTV.

The standard property two-year fix is at 3.35 per cent rising to 3.70 per cent on the five-year fix. The HMO and MUB products are at 3.50 per cent for two-years and 3.75 per cent for the five-year version.

Paragon director of mortgage sales Moray Hulme said: “We are pleased to be able to support landlords improving the energy performance of their properties and drive standards in the private rented sector.

“Our research shows that a large proportion of landlords are interested in making their properties more energy efficient through the government’s Green Homes Grant scheme and these further advance products will help finance any improvements.”

£4m conversion deal

Meanwhile, Paragon’s development arm has completed a £4m deal to fund a 25-property housing conversion in Surrey.

The funding supported developer Farleigh with the acquisition and development of the Mulberry House site in Dorking.

The project will comprise 25 apartments and is due to be completed in November.

Farleigh has already approached Paragon for further support on a second scheme, which is due to complete at the end of February.

Farleigh co-founder Robert Mulligan said: “This support from Paragon is enabling the conversion of the former offices into a collection of high specification apartments.

“Paragon’s development finance team worked with us from day one to understand the structure of the deal and to tailor the terms and offering to meet our needs. The business worked with our tight timeframes to ensure that we got the deal done.”

Paragon relationship director Adrian Reeves added: “We look forward to furthering our support for Farleigh by funding an enhanced planning permission on the site in due course, as well as another scheme which is due to start construction in the coming months.”