Paragon returns to the vacation rental market
Paragon Bank has announced that it is re-entering the vacation rental and short-term finance markets after adding products to its rental mortgage lines.
After an update, Paragon is offering four products for buying or remortgage individual freestanding properties leased on an approved vacation occupancy agreement, including AirBnB. Available to investors on their own behalf or through their limited company, two products are offered to portfolio owners and two are intended for non-portfolio investors.
Two-year fixed rate products are available at a 70% loan-to-value ratio on a maximum loan of £ 500,000. Initial rates start at 4.20%, two of the four mortgages have no product fees, and all include a free appraisal.
An application fee of £ 299 is payable and the prepayment charge is 3% for two years.
The specialist lender has also resumed providing short-term finance suitable for a range of renovation projects of up to 70% and with monthly rates starting from 0.45%.
Moray Hulme, Director of Mortgage Sales, said:
“With restrictions easing here in the UK but still uncertainties about overseas travel, national holidays are already proving to be extremely popular again this year. To accompany those who wish to invest in property suited to the In this market, we have renewed our offer by adding four seasonal rental products.
“We have also extended our range to include flexible, short-term financing for homeowners undertaking renovation projects.
“The significant improvement in the quality of private rental housing observed over the past decade correlates with investment through rental finance and these products are an example of the role lenders can play. Along with our recently launched line of energy efficient mortgages, our short-term finance products demonstrate the support Paragon provides to the many landlords striving to improve the quality of private rental housing in the UK.