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Paragon launches short term finance for landlords

  • Short term finance for landlords to fund property refurbishment
  • Choice of options to cover property acquisition as well as upgrades to existing property
  • Interest can be rolled up or paid monthly
  • Opportunity to convert to a buy-to-let mortgage with reduced application fees

Paragon is expanding its specialist buy-to-let mortgage range with new short term finance products for property acquisition and refurbishment.

The short term finance products are designed to help landlords planning to purchase and improve property, as well as those looking to upgrade already-owned property to achieve a better yield.

The range includes three different options to cover standard, light and heavy refurbishment projects. This makes it suitable for landlords considering simple improvements, those undertaking refitting and modernisation work and those carrying out alterations that need planning permission, permitted development rights or building regulations. The range also extends to projects involving a change of use for HMOs and multi-unit conversions.

All options offer loan 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 option selected. Loans are interest only and come with a choice of either monthly payments or rolled up interest.

Landlords applying for 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 said:

Short term finance is an important part of the funding mix especially for professional landlords looking to grow or reconfigure their property portfolio. As landlord tax changes begin to bite, property refurbishments can offer an attractive route to boost capital value and improve yield

Learn more about Paragon’s new short term finance range

13 May 2019

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551