Paragon launch consumer buy-to-let offering

Paragon Mortgages 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.

Paragon will only accept consumer buy-to-let applications submitted by intermediaries who are fully registered with the FCA 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 (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

John Heron, Director of Mortgages, said: “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.”