Paragon has launched four green further advance products for landlords who have been accepted for a Green Homes Grant.

No application or product fees apply to the products, which include a free valuation.

Rates start at 3.35 per cent on the products, which are available over two- and five-year terms, up to 75 per cent LTV for maximum loans of £750,000 and up to 70 per cent LTV on loans up to £1m; there is a maximum loan to value of cap of 65 per cent on borrowings up to £2m.

The government’s Green Homes Grant scheme covers two-thirds of the eligible improvements, up to a maximum contribution of £5,000 and Paragon’s green further advance product can be used to fund the remainder of the work.

Paragon director of mortgage sales Moray Hulme says: “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.”

The two-year HMO and MUB product has an initial rate of 3.50 per cent which increases to 3.75 per cent when the loan is fixed for five years. Landlords financing enhancements to SSCs will be charged an initial rate of 3.35 per cent on the two-year product, rising to 3.70 per cent with the five-year fix.