Moray Hume

Paragon introduces green further advance range

Paragon Bank has launched four green further advance products to support landlords in improving the energy performance of their properties.

They are offered at 75% LTV for a maximum loan of £750,000, 70% LTV on maximum loans of £1m and 65% LTV on maximum loans of £2m.

All four products have no application and product fees, include a free valuation, and are available over two- and five-year terms for HMOs, MUBs and SSCs in England.

The HMO and MUB products have a rate of 3.50% on a two-year fixed term, and 3.75% on a five-year fixed rate.

Landlords financing enhancements to SSCs will be charged an initial rate of 3.35% on the two-year product, rising to 3.70% with the five-year fix.

The two-year mortgages are subject to a 3% ERC, and the five-year product has an ERC of 5% in years one and two, 4% in years three and four and 3% in year five.

The four products are available for portfolio landlords who have been accepted for a Green Home Grant under the government scheme, which covers two thirds of the eligible improvements, up to a maximum contribution of £5,000.

Paragon’s green further advance products can be used to fund the remainder of the work. 

Details of the scheme, which is available until March 2022, and how to apply can be found on the government website.

Moray Hulme, director of mortgage sales at Paragon Bank (pictured above), said: “We are pleased to be able to support landlords improve the energy performance of their properties and drive standards in the private rented sector. 

“Our research shows that a large proportion of landlords are interested in making their properties more energy efficient through the government’s Green Homes Grant scheme and these further advance products will help finance any improvements.

“As part of our wider commitment to playing an active part in improving the sustainability of property in the UK, we are incentivising green improvements to BTL properties by offering these further advance deals with free valuations and no application and product fees.”

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