Specialist buy-to-let lender Paragon Mortgages has launched a limited refurbishment mortgage that aims to give landlords greater flexibility when doing up properties.
The new product is available to professional landlords looking to purchase properties in need of some modernisation, to improve the condition and increase their rental appeal.
It will typically cover improvements such as new kitchens and bathrooms, and is available up to 75% LTV for single, self-contained properties.
The deal will charge an initial rate of 5.25%, with a 2% product fee.
John Heron, director of mortgages at Paragon, said: “This new facility has been designed to help landlords bring properties up-to-date and present them in the best possible condition to prospective tenants.
“It makes it easier for landlords to carry out improvements and increase the value and rental income of a property.”
The facility provides for an initial advance of up to 75% and then up to £25,000 of additional funding for works carried out after the mortgage has completed, provided the total loan doesn't exceed 75% of the value of the property once improved.
A minimum property valuation of £75,000 applies for both pre and post-work valuations.
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