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Paragon re-enters holiday lets and short-term finance markets

Paragon Bank has announced that it is re-entering the holiday lets and short-term finance markets after adding products to their buy-to-let mortgage ranges.

Following a refresh, Paragon is offering four products for purchasing or remortgaging single self-contained properties being let on an approved holiday occupancy agreement, including Air BnB. Available to investors in their personal names or through their limited company, two products are offered for portfolio landlords and two are for non-portfolio investors.

The two-year fixed rate products are available at 70% loan-to-value (LTV) on a maximum loan of £500,000. Initial rates start at 4.20%, two of the four mortgages feature no product fee, and all include a free valuation.

A £299 application fee is payable and Early Repayment Charges (ERC) are 3% for two years. 

The specialist lender has also resumed providing short-term finance suitable for a range of refurbishment projects classified as ‘Standard’, ‘Light’ and ‘Heavy’.

The standard and light refurbishment products are offered at up to 70% LTV and the heavy refurbishment option is available at up to 65% LTV, all on maximum purchase or remortgage loans of £1,000,000.

Monthly product rates range between 0.45% and 0.65% for the standard, 0.55% and 1.20% for the light refurbishment and 0.65% and 1.15% for loans financing heavy refurbishment projects.

Valuation fees start at £280; application fees are £150 and early repayments are charged at 1% for one month on the standard refurbishment product and 1% for two months on the light and heavy refurbishment products.  

Moray Hulme, Director for Mortgage Sales said: “With restrictions easing here in the UK but still so much uncertainty surrounding overseas travel, domestic holidays are already proving to be extremely popular again this year. To support those who want to invest in properties that cater to this market, we have refreshed our offering by adding four holiday let products.

“We have also extended our range to include flexible short-term finance for landlords who are undertaking refurbishment projects.

“The significant improvement in the quality of private rented sector houses seen over the past decade correlates with investment through buy-to-let finance and these products are an example of the part that lenders can play. Sitting alongside our recently launched energy efficient mortgage range, our short-term finance products show the support that Paragon is providing the many landlords who are working to improve the standard of privately rented housing in the UK.”