Paragon, a specialist bank and buy-to-let mortgage lender, is introducing a procuration fee for intermediaries who submit further advance business for buy-to-let customers that subsequently completes.
Paragon will pay procuration fees for further advance business at the same rate as intermediaries’ standard business terms for new mortgage applications, typically 0.5 per cent of the value of the funds advanced.
A further advance enables a landlord with an existing Paragon mortgage to release capital to fund further property-related investment and development and can provide a competitive and more convenient alternative to a full remortgage of the property.
The introduction of the procuration fee for further advance follows the launch of a new online portal and application process for switch products and further advance business.
The procuration fee recognises the critical role our intermediaries play in supporting customers.
John Heron, Managing Director of Mortgages at Paragon said: “The new online portal gives customers and intermediaries the tools they need to help them access switch and further advance facilities quickly and easily. Introducing the procuration fee today recognises the critical role our intermediaries play in supporting customers through the decision-making process.”