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Buy to Let

Paragon launches refurb mortgage for landlords

paulajohn
Written By:
paulajohn
Posted:
Updated:
03/12/2013

The specialist buy-to-let lender has introduced a new loan for buy-to-let properties in need of improvement.

Paragon is offering the new refurbishment mortgage loan to experienced landlords looking to buy further property which is in need of modernnisation or refurbishment to increase its appeal to tenants and boost the rent it can achieve.

This mortgage is offereed on single, self-contained properties that would benefit from modest improvements – such as a new kitchen or bathroom.

The tracker mortgage is charged at 5.25%, available up to 75% loan-to-value and comes with a 2% fee.

John Heron, director of mortgages, said:

“This new facility has been designed to help landlords bring properties up-to-date and present them in the best possible condition to prospective tenants.”

The facility provides for an initial advance of up to 75% and then up to £25,000 of additional funding for works carried out after the mortgage has completed, as long as the total loan does not exceed 75% of the value of the property once improved.

A minimum property valuation of £75,000 applies for both pre- and post- work valuations.

Paragon reported gross mortgage lending to landlords up by 90% in the year to September while making “good progress” on launching a consumer-facing bank in its results last week.

The lender advanced £359.8m in the year to September 2013 against £188.9m in 2012. Buy-to-let business yet to complete totalled £231.9m.


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