Paragon launches green further advance products

Mortgage Introducer

April 28, 2021

epc ratings

Paragon Bank has expanded its energy efficient focused range with the launch of two further advance products for properties with EPC ratings of A, B or C.

The products are available for landlords with four or more mortgaged buy-to-let properties and are looking for additional funding for lettings businesses they manage as individuals, limited companies or limited liability partnerships.

All products have nil product fee, no application fee and are offered with a free valuation.

The 75% loan-to-value (LTV) further advances are available on houses in multiple occupation (HMOs) multi-unit blocks (MUB) or single self-contained units (SSCs) in England and Wales.

On HMOs and MUBs rates are fixed at 3.50% for two years and 3.75% over five years. Rates start at 3.35% on 2-year fixes for SSCs, rising to 3.70% when borrowed over a 5-year term.

Moray Hulme, director of mortgage sales, said: “We are committed to encouraging our landlords to invest in energy efficient properties, thereby increasing the proportion of A-C rated properties in the private rented sector (PRS).

“In March we launched products with market-leading rates to incentivise the purchase or remortgage of properties with EPC rating of A-C. We had a fantastic response to these and wanted to build on this to offer more choice for landlords who wish to improve the sustainability of their lettings businesses.”

The 2-year fixed rate products incur early redemption charges of 3% and on the 5-year fixed rate products early redemption charges are 5% for years one and two, 4% for years three and four and 3% for year five.

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