Buy-to-let (BTL) specialist lender Paragon has brought a refurb-to-let proposition, which will allow landlords to access finance to upgrade their properties.
Paragon’s two refurb-to-let products are aimed at properties that need some modernisation but not structural changes.
This is traditionally defined as work where no planning permission or building regulations are required.
The products are suitable for small house in multiple occupation (HMO) adaptations and can be used for single self-contained properties, HMOs and multi-unit blocks (MUBs) in England, Scotland and Wales.
The deals are available up to 75% loan to value (LTV), initially over a 1-6-month term, with monthly product rates from 0.75%.
Landlords will then switch to a BTL mortgage from available Paragon products.
Borrowers choosing a refurb-to-let product can apply for a BTL mortgage at the same time, which will cut processing time and not incur additional application fees.
Louisa Sedgwick (pictured), commercial director for mortgages at Paragon Bank, said: “We’re really excited to launch our new refurb-to-let proposition. 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.”
She added: “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.”
Paragon simplifies its mortgage range by removing the differentiation between portfolio and non-portfolio products.
The lender said that the consolidation of the ranges means it can inform the broker which deal is suitable for their client earlier in the process.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
