Paragon Bank has expanded its range of green buy-to-let products with the launch of four further advances exclusively available for properties with an EPC rating of A, B or C.
The four new 80% loan to value (LTV) further advances are available for landlords who have four or more mortgaged buy-to-let properties in England and Wales in their personal names or through their limited company.
Initial fixed rates start at 3.75% and the products are available on single self-contained units (SSCs) as well as houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) over two-year and five-year terms. All are offered with no product fee, no application fee, and a free valuation.
Early redemption charges (ERC) are set at 3% on the two-year fixed rate products. On the five-year products ERCs are 5% for years one and two, 4% for years three and four and 3% for year five.
Moray Hulme (pictured) Paragon Bank’s director of mortgage sales, said: “With the government proposing that PRS homes will need a minimum EPC rating of C for new tenancies by 2025 and for all homes in the sector by 2028, we recognise that a number of landlords may need to modify their portfolios.
“This may require significant investment so the financial services sector can play an important part in creating sustainable future. By adding to our product range that offers financial incentives to encourage investment in more energy efficient homes, we’re supporting landlords, helping them comply with government regulations while making their properties more attractive to prospective tenants.”
