John Heron

Paragon to implement PRA phase 2 changes

Paragon Mortgages has announced it will implement the PRA phase 2 changes for portfolio landlords on all new applications received from Monday 17th July.

The new changes introduce more thorough underwriting standards for portfolio landlords with four or more mortgaged properties and must be implemented before 30th September 2017.

Paragon has decided to implement the changes ahead of the PRA deadline to give intermediaries time to make any necessary adjustments.

Brokers should submit applications to Paragon Mortgages if their client has a portfolio with four or more mortgaged properties, is applying from a limited company or seeking finance for a house in multiple occupation or a multi-unit block.

Mortgage Trust will focus on applications from individual landlords with three or fewer, single, self-contained, mortgaged properties.

John Heron, managing director at Paragon Mortgages (pictured above), said: “Currently, many lenders focus mainly on the rental income and value of the property they are lending against when underwriting buy-to-let property.

“At Paragon, we’ve always asked for information on all the properties a landlord holds and on the full range of their economic activity so that we can assess their business in the round and consider the impact of the new lending on their performance.

“Against this background, this implementation of the PRA phase 2 changes should result in minimal change for intermediaries and their customers.”

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