Paragon Bank

Paragon Bank launches new BTL range for energy efficient properties

Paragon Bank has launched a range of 80% LTV BTL mortgages, specifically for properties with an energy performance rating of A to C.

The new offering aims to encourage landlords to invest in energy efficient properties and increase the proportion of A-C rated homes in the private rented sector (PRS).

The five-year fixed-rate products are for purchase and remortgage and include free valuations, no product fees and £350 cashback. 

They are available for portfolio landlords on single self-contained properties and HMOs at a rate of 3.99% and 4.19%, respectively.

Under government proposals, homes in the PRS will need a minimum EPC rating of C for new tenancies by 2025 and all tenancies in the sector will require this rating by 2028.

Richard Rowntree, managing director of mortgages at Paragon Bank, said: “Landlords have made great strides in adding more energy efficient homes to the PRS or upgrading properties to C or above standard over the past decade. 

“However, more needs to be done as the government moves towards its net zero carbon target by 2050 — and landlords have a key role to play in that. 

“Our new range of products at 80% LTV for homes with an energy rating of C or above will be an incentive for landlords to add energy efficient homes to the sector, benefitting tenants through lower energy bills and the environment through reduced consumption.”

This follows the launch of Paragon’s green further advance products in February, which aims to support landlords upgrading existing properties with an EPC rating of D or below.

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