Landlords can apply for both refurb-to-let and buy-to-let mortgages simultaneously
Specialist lender Paragon Bank has introduced a refurb-to-let proposition, providing landlords with financing to upgrade their properties.
The new products cater to properties needing modernisation but not structural changes, typically those not requiring planning permission or building regulations. These products are also suitable for small house in multiple occupation (HMO) adaptations.
The refurb-to-let products offer up to 75% loan-to-value (LTV) for an initial term of one to six months, with monthly rates starting at 0.75%. After this period, landlords can transition to a buy-to-let mortgage, with choices from any appropriate Paragon product.
Landlords can apply for both refurb-to-let and buy-to-let mortgages simultaneously, streamlining the process and avoiding extra application fees.
These products are available for single self-contained properties, HMOs, and multi-unit blocks in England, Scotland, and Wales.
“We’re really excited to launch our new refurb-to-let proposition,” said Louisa Sedgwick (pictured), commercial director for mortgages at Paragon Bank. “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.”
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