Paragon Mortgages announces new consumer buy to let product

Paragon Mortgages says that it will now be accepting applications for consumer buy to let via its sister brand Mortgage Trust.

Ahead of the industry implementation date of 21 March, the buy to let specialist’s online application system is now live and ready for intermediaries to submit consumer buy to let applications.

All existing products in the Mortgage Trust range will be available to consumer buy to let customers but Paragon will only accept consumer buy to let applications submitted by intermediaries who are fully registered with the Financial Conduct Authority to conduct consumer buy to let business.

Applications that may be impacted include a first time landlord who is remortgaging a property they have inherited, as they have decided to rent it out where they are not already a landlord and 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

‘We are pleased we have been able to launch our consumer buy to let application process ahead of 21 March when MCD takes effect,’ said John Heron, Director of Mortgages.

‘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,’ he pointed out.

‘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,’ he added.