Paragon Bank has confirmed it is re-entering the holiday lets and short-term finance markets following the addition of products to their buy-to-let (BTL) mortgage ranges.

The lender is offering four products for purchasing or remortgaging single self-contained properties being let on an approved holiday occupancy agreement, including Airbnb.

Available to investors in their personal names or through their limited company, Paragon is offering two products for portfolio landlords and two for non-portfolio investors. The two-year fixed rate products are available at 70% LTV on a maximum loan of £500,000. Initial rates start at 4.20%, and two of the four mortgages feature no product fee.

The standard and light refurbishment products are being offered at up to 70% LTV and the heavy refurbishment option is available at up to 65% LTV, all on maximum purchase or remortgage loans of £1,000,000. The lender’s product rates range between 0.45% and 0.65% for the standard, 0.55% and 1.20% for the light refurbishment and 0.65% and 1.15% for loans financing heavy refurbishment projects.

Paragon director for mortgage sales, Moray Hulme, commented: “With restrictions easing here in the UK but still so much uncertainty surrounding overseas travel, domestic holidays are already proving to be extremely popular again this year. To support those who want to invest in properties that cater to this market, we have refreshed our offering by adding four holiday let products.

“We have also extended our range to include flexible short-term finance for landlords who are undertaking refurbishment projects.

“The significant improvement in the quality of private rented sector houses seen over the past decade correlates with investment through BTL finance and these products are an example of the part that lenders can play.”

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