Paragon is expanding its specialist buy-to-let mortgage range with new short-term finance products for property acquisition and refurbishment.
The products are designed to help landlords planning to purchase and improve property, as well as those looking to upgrade their existing properties to achieve a better yield.
The range includes three different options to cover standard, light and heavy refurbishment projects – suitable for simple improvements, undertaking refitting and modernisation work, and carrying out planning permission or building regulations.
The range also extends to projects involving a change of use for houses in multiple occupation (HMOs) and multi-unit conversions.
All loans offer amounts of up to £1,000,000, with maximum loan-to-value (LTV) ratios ranging from 65% to 75% and terms from one month to 12 months (depending on the options selected).
What’s more, loans are interest-only and come with a choice of either monthly payments or rolled up interest.
Landlords applying for a 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, commented: “Short-term finance is an important part of the funding mix, especially for professional landlords looking to grow or reconfigure their property portfolio.”
“As landlords tax changes begin to bite, property refurbishments can offer an attractive route to boost capital value and improve yield.”