Paragon Mortgages now accepts applications for consumer buy-to-let via its sister brand Mortgage Trust.
All existing products in the Mortgage Trust range will be available to consumer buy-to-let customers now – 4 days ahead of the launch of the Mortgage Credit Directive.
However, Paragon will only accept consumer buy-to-let applications from intermediaries who are fully registered to conduct this business with the FCA.
A consumer landlord could be:
- A first-time landlord who is remortgaging a property they have inherited, as they have decided to rent it out (and who is not already a landlord)
- A first-time landlord who chooses not to sell their existing home having then decided to rent it out and finance it with a buy-to-let mortgage
Director of Mortgages John Heron says: “We are pleased we have been able to launch our consumer buy-to-let application process ahead of 21 March when MCD takes effect. Whilst the proportion of this type of business is not huge across the industry, it is a potentially important gateway to property investment for first-time landlords and should be supported.
“Intermediaries will need to be registered to submit this type of business to us and we have designed a decision tree within our system to help them identify those applications that fall into this category.”