"Making this finance quicker and easier to access will be particularly beneficial for those investing to remain compliant with new regulations, such as the forthcoming changes to the PRS Minimum Energy Efficiency Standards"
- Andrew Smart - Paragon Bank
Paragon Bank has revamped its buy-to-let further advance proposition, cutting rates by 20bps, lowering the minimum loan size to £2,000 and migrating applications onto an enhanced originations platform that promises faster turnaround times for brokers and landlords.
The changes follow broker feedback and bring further advances in line with Paragon's wider buy-to-let mortgage application journey, using the same layout and streamlined process. Where no property inspection is required, the lender can now issue offers within 48 hours, with funds available to landlords within 24 hours of receiving a signed offer acceptance.
Automated valuation models and additional data sources will reduce the need for in-person revaluations in most cases. Paragon is also drawing on new and existing data to give landlords an early indication of how much additional borrowing they may be able to access before submitting a full application. Where that indication cannot be provided, applications will still be accepted and assessed by the lender's underwriting team on a case-by-case basis.
On pricing, five-year fixed further advance rates now start at 6.25% up to 75% LTV for single self-contained (SSC) properties, while two-year fixes start at 6.40%. Equivalent products for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs) are available at 20bps above the SSC rates.
The timing of the changes is deliberate. With minimum EPC requirements for rental properties set to tighten ahead of the October 2030 deadline, Paragon expects further advance demand to grow as landlords look to fund improvement works. Around 40% of the lender's further advance loans are already being used for property upgrades.
Research carried out by Pegasus Insights on Paragon's behalf found that 62% of landlords anticipate carrying out work to reach the minimum EPC C standard, with 22% expecting to use external finance, including further advances, to cover the cost.
"We've moved our further advance proposition onto our enhanced origination platform, with brokers benefiting from the same ease of use, clear and easy layout and intuitive design," said Andrew Smart, head of mortgages transformation at Paragon Bank.
"This makes the process simpler for brokers and their landlord clients, providing quicker release of funds where we don't need to inspect the property. A substantial proportion of the further advance business we write supports home providers to improve their properties.
"Making this finance quicker and easier to access will be particularly beneficial for those investing to remain compliant with new regulations, such as the forthcoming changes to the PRS Minimum Energy Efficiency Standards."
