Paragon Mortgages has unveiled a new limited refurbishment product for buy-to-let landlords.
The new deal is available to professional landlords looking to purchase properties that are in need of some modernisation to improve the condition and increase the rental appeal for prospective tenants.
Paragon says its new tracker product is available for single, self-contained properties that would benefit from modest improvements – such as a new kitchen or bathroom – with an initial rate of 5.25%, a maximum of 75% LTV and a 2% product fee.
The facility provides for an initial advance of up to 75% and then up to £25,000 of additional funding for works carried out after the mortgage has completed, as long as the total loan does not exceed 75% of the value of the property once improved.
A minimum property valuation of £75,000 applies for both pre and post work valuations.
John Heron, director of mortgages, said: “This new facility has been designed to help landlords bring properties up-to-date and present them in the best possible condition to prospective tenants.
“Available to landlords investing in single, self-contained properties, it makes it easier for them to carry out improvements and increase the value and rental income of a property.”
