Buy to Let

Paradigm Releases Portfolio Buy to Let Landlord Factsheet

A new factsheet has been released by Paradigm Mortgage Services which covers all eligible buy to let panel lenders’ portfolio landlord criteria following the introduction of the new PRA rules.

Several lenders have already announced how they will be approaching landlord lending. Paradigm has confirmed that they will be updating their factsheet as new information is released.

As it stands, the factsheet contains information on each lenders portfolio landlord underwriting policies, as well as providing a document that advisers will be able to use to compare different offers.

The factsheet aims to cover information such as whether or not the lender in question is open to portfolio landlord applicants and whether it offers a specific scheme for them. Other areas of information convered include document requirements and whether additional underwriting needs to be carried out.

Accompanying the factsheet will be a rental calculation document. This will outline all lenders on the Paradigm panel as well as their current rental calculations and ICR stress tests.

Head of Paradigm Mortgage Services, John Coffield, said: ‘There is now less than two months until the PRA’s underwriting changes for portfolio landlords are brought in and we are starting to hear from lenders about how they intend to approach the new rules. At the time of writing we have just a handful of lenders who have come forward but we anticipate more will follow in the coming weeks. There’s no doubting that some of the announcements and detail already provided are quite confusing, particularly when a lender states that they will accept applications from portfolio landlords but when reading the details it’s obvious they have no intention in playing in the complex market of portfolios and limited company transactions.’

He continued: ‘This adds a level of complexity to an already difficult marketplace to advise in, and Paradigm wants to provide advisers with easily-comparable data in this area. This is why we have produced our matrix factsheet which includes details on each of our lending partners’ intentions and how they intend to underwrite a portfolio landlord case. We will be updating this document on a weekly basis as more lenders ‘go public’ and will be advisers members when new information is added.’

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