Paragon Bank has launched four green further advance products, with rates starting from 3.35%.
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.
The mortgages are available in England on houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), as well as single self-contained properties (SSCs).
Mortgages are offered at 75% loan to value (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 two and five-year terms. The two-year mortgages are subject to a 3% Early Repayment Charge (ERC) and the five-year product has an ERC of 5% in years one and two, 4% in years three and four and 3% in year five.
The two-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 two-year product, rising to 3.70% with the five-year fix.
Details of the government scheme, which is available until March 2022, and how to apply can be found on the government website.
Moray Hulme, Paragon’s director of mortgage sales, 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.”
