Paragon Mortgages has released a new product to professional landlords seeking to purchase properties that require refurbishment.
The lender will provide an initial advance of up to 75 per cent loan-to-value and then up to £25,000 of additional funding to carry out the improvements – provided the total loan does not exceed 75 per cent of the refurbished property’s value. It is available for single, self-contained properties.
The new product carries an initial rate of 5.25 per cent and a two per cent product fee.
Paragon head of mortgages John Heron says: “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.
“Available to landlords investing in single, self-contained properties, it makes it easier for them to carry out improvements and increase the value and rental income of a property.”