Paragon is introducing a proc fee for intermediaries who submit further advance business for buy-to-let customers that subsequently completes.
Paragon will pay fees for further advance business at the same rate as intermediaries’ standard business terms for new mortgage applications, typically 0.5% of the value of the funds advanced.
Paul Brett, managing director of intermediaries at buy-to-let lender, Landbay, said: “I think it’s a progressive move as it is important for brokers to explore all options including the existing lender when they are considering further finance for their clients.
“I think brokers should look at all avenues which could include second charges but in the specialist market, buy-to-let volumes are still strong.”
Paragon will pay procuration fees for further advance business at the same rate as intermediaries’ standard business terms for new mortgage applications, typically 0.5% of the value of the funds advanced.
A further advance enables a landlord with an existing Paragon mortgage to release capital to fund further property-related investment and development and can provide a competitive and more convenient alternative to a full remortgage of the property.
John Heron, managing director of mortgages at Paragon said: “The new online portal gives customers and intermediaries the tools they need to help them access switch and further advance facilities quickly and easily.
“Introducing the procuration fee today recognises the critical role our intermediaries play in supporting customers through the decision-making process.”
It follows the introduction of an online portal and application process for switch products and further advance business at the beginning of the year.
These were designed to help intermediaries identify where funds may be available and to what value, and support a fast and efficient application process.