Paragon to make portfolio BTL changes to comply with PRA’s new requirements

Paragon to make portfolio BTL changes to comply with PRA’s new requirements


Todays other news
The National Residential Landlords Association is staging a property investment...
After breaking records in July, rents remained high in August...
Relocation experts 1st Move International Removals have analysed rental yields...
Paragon Bank analysis of buy-to-let mortgage offers in popular student...
Knight Frank has been appointed by Legal & General to...


Paragon Mortgages is the latest in a long line of lenders to announce that it will be implementing changes for portfolio landlords ahead of the Prudential Regulation Authority’s (PRA) new requirements on 30 September.

The new rules, which Paragon will implement from Monday next week, have been designed to comply with the PRA’s new guidelines on underwriting buy-to-let mortgage applications from portfolio landlords.

The PRA defines a portfolio landlord as a borrower with at least four distinct mortgaged buy-to-let properties, which means that Paragon Mortgages may request additional detailed information from portfolio landlords to help make the appropriate lending decision, in according with the new regulations.

Paragon’s sister brand Mortgage Trust will service the less complicated cases.

John Heron, managing director of Paragon Mortgages, commented: “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.”

Tags: Mortgages

Share this article ...

Join the conversation: Login and have your say

Subscribe to comments
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
A finances expert at the Best Invest consultancy is warning...
Investors will be delighted that there have been so many...
Property investors are cautiously optimistic and focusing on the prospect...
The latest house price index for the UK - released...
The financial success of your buy-to-let depends on the investment...
The new Labour government has finished the job started by...
Manchester is the highest-ranking English city for residential investment, according...
Recommended for you
Latest Features
The National Residential Landlords Association is staging a property investment...
After breaking records in July, rents remained high in August...
Relocation experts 1st Move International Removals have analysed rental yields...
Sponsored Content
In the ever-evolving landscape of property investment, staying ahead of...
Property investors, This one's for you. Lendlord's latest Deal Analyser...
The savvy property investor knows the importance of adapting their...
0
Would love your thoughts, please comment.x
()
x

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here