Paragon Bank has launched four green further advance products to support landlords in improving the energy performance of their properties.
Rates start from 3.35% and all four products have no application fee, no product fee and include a free valuation.
In order to be eligible for one of the new green products, landlords must have been accepted for a Green Homes Grant under the government scheme, which covers two-thirds of the eligible improvements, up to a maximum contribution of £5,000.
Paragon’s green further advance product can be used to fund the remainder of the work.
Moray Hulme, director of mortgage sales at Paragon, said: “We are pleased to be able to support landlords improve the energy performance of their properties and drive standards in the private rented sector.
“Our research shows that a large proportion of landlords are interested in making their properties more energy efficient through the government’s Green Homes Grant scheme and these further advance products will help finance any improvements.”
“As part of our wider commitment to playing an active part in improving the sustainability of property in the UK, we are incentivising green improvements to buy-to-let properties by offering these further advance deals with free valuations and no application and product fees.”
The mortgages are available in England on houses in multiple occupation and multi-unit blocks as well as single self-contained properties.
Mortgages are offered at 75% LTV for maximum loans of £750,000, 70% LTV on maximum loans of £1m and 65% LTV on maximum loans of £2m.
All four products are available over 2 and 5-year terms.
The 2-year mortgages are subject to a 3% early repayment charge (ERC) and the 5-year product has an ERC of 5% in years one and two, 4% in years three and four and 3% in year five.
The 2-year HMO and MUB product has an initial rate of 3.50% which increases to 3.75% when the loan is fixed for five years.
Landlords financing enhancements to SSCs will be charged an initial rate of 3.35% on the 2-year product, rising to 3.70% with the 5-year fix.