A prominent buy to let lender has launched a range of products to help landlords improve the energy efficiency of rental properties and to help cover the cost of Green Homes Grant improvements.
Paragon Bank’s so-called green further advance products are aimed at portfolio landlords accepted for the government’s Green Homes Grant - this covers two thirds of energy efficiency improvements up to a maximum of £5,000.
Paragon’s products, which have no application or product fee and rates starting at 3.35 per cent, can be used to fund the remainder of the work.
The mortgages are available in England on HMOs, multi-unit blocks and single self-contained properties.
“Our research shows that a large proportion of landlords are interested in making their properties more energy efficient through the Green Homes Grant scheme and these further advance products will help finance any improvements” explains Moray Hulme, Paragon director of mortgage sales.
“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” he adds.
However, media reports in the past fortnight suggest the government £2 billion Green Homes Grant initiative has descended into confusion with some renewable energy installers owed tens of thousands of pounds, while landlords and other property owners are waiting up to four months to have low carbon heating systems fitted.