Paragon implements PRA underwriting changes

From next week, Paragon will implement the PRA Phase 2 changes, which require more thorough underwriting standards for portfolio landlords with four or more mortgaged properties.

Related topics:  Mortgages
Rozi Jones
12th July 2017
John Heron Paragon
"This implementation of the PRA Phase 2 changes should result in minimal change for intermediaries and their customers."

Paragon says its decision to implement the changes ahead of the PRA deadline in September reflects the fact that the new standards require "only minimal change to its existing approach".
 
As from Monday, brokers should route all applications from portfolio landlords with four or more mortgaged properties exclusively through Paragon Mortgages.

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, 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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