Paragon Bank launches new refurb-to-let finance options for landlords

Paragon Bank has introduced a new refurb-to-let scheme, providing landlords with the financial means to upgrade their properties.

Launch of refurb-to-let products
Paragon Bank’s refurb-to-let products are aimed at properties needing modernisation but not structural changes, such as those where no planning permission or building regulations are required. These products are also suitable for small houses in multiple occupation (HMO) adaptations.

Product details and availability
The refurb-to-let products offer up to 75% loan-to-value, with terms ranging from one to six months. Monthly rates start from 0.75%. After the initial term, landlords can switch to a buy-to-let mortgage, choosing from Paragon’s range of suitable products. Landlords can apply for both refurb-to-let and buy-to-let mortgages simultaneously, streamlining the process and avoiding extra application fees.

These products are available for single self-contained properties, HMOs, and multi-unit blocks across England, Scotland, and Wales.

Paragon’s vision for property improvements
Louisa Sedgwick, Commercial Director for Mortgages at Paragon Bank, expressed enthusiasm about the new offering: “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.”

She highlighted the potential benefits of these upgrades, stating, “Upgrades could focus on improving the sustainability of properties or making general improvements that result in a nicer living environment for tenants.”

An alternative to bridging finance
Sedgwick also noted the advantages for landlords and brokers who might hesitate to use bridging finance: “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.”