Paragon Bank

Paragon re-enters short-term finance market

Paragon Bank has announced its return to the short-term finance and holiday let sectors.

The specialist lender has resumed providing short-term finance suitable for a range of refurbishment projects classified as ‘standard’, ‘light’ and ‘heavy’. 

The standard and light refurbishment offerings can be provided at up to 70% LTV, with the heavy option available at up to 65% LTV, all on maximum purchase or remortgage loans of £1m. 

Monthly rates are between 0.45% and 0.65% for standard, 0.55% and 1.20% for light and 0.65% and 1.15% for heavy.

Valuation fees start at £280; application fees are £150; and early repayments are charged at 1% for one month on the standard refurbishment product and 1% for two months on the light and heavy refurbishment products.  

“We have extended our range to include flexible short-term finance for landlords who are undertaking refurbishment projects,” commented Moray Hulme, director for mortgage sales at Paragon (pictured above).

“Sitting alongside our recently launched energy efficient mortgage range, our short-term finance products show the support that Paragon is providing the many landlords who are working to improve the standard of privately rented housing in the UK.” 

The bank is also offering four products for purchasing or remortgaging single self-contained properties being let on an approved holiday occupancy agreement, including Airbnb. 

The range is available to investors in their personal names or through their limited company; two products can be used by portfolio landlords, while two are for non-portfolio borrowers.

The two-year fixed-rate products go up to 70% LTV on a maximum loan of £500,000. 

Initial rates start at 4.20%, with two of the four mortgages featuring no product fee, and all including a free valuation. 

The holiday let products include a £299 application fee and ERCs are 3% for two years.  

Moray added: “With restrictions easing here in the UK but still so much uncertainty surrounding overseas travel, domestic holidays are already proving to be extremely popular again this year. 

“To support those who want to invest in properties that cater to this market, we have refreshed our offering by adding four holiday let products.

“The significant improvement in the quality of private rented sector houses seen over the past decade correlates with investment through BTL finance, and these products are an example of the part that lenders can play."

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