"HMOs and MUBs are increasingly attractive to landlords looking to maximise returns."
- Louisa Sedgwick - Paragon Bank
Paragon Bank has extended its streamlined BTL application journey to include landlords with more complex property requirements, with the process now covering HMOs and MUBs.
The change expands Paragon’s proposition, with the aim of speeding up the mortgage application process for newer and smaller-scale landlords investing in typically higher-yielding property types.
Paragon launched the streamlined service for single self-contained properties in the summer.
Using Paragon’s mortgage origination platform, launched in March this year, key application information is automatically pre-populated from sources including Companies House, Experian and Hometrack.
The process is suitable for up to 75% LTV and up to £2 million exposure with Paragon.
For qualifying applications, with Paragon carrying out the valuation, brokers now only need to provide a property schedule, and this is only applicable where borrowers hold four or more buy-to-let properties.
In most cases, there is no need to upload payslips, tax returns or bank statements, and limited company applicants are not asked to submit two years of accounts upfront.
All applications continue to be 100% underwritten, with additional documentation only requested where required.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: "This is a natural next step in the evolution of our proposition. We’re proud of our heritage in complex buy-to-let lending, and this enhancement means landlords can now access that expertise through a much simpler and faster application journey."
"HMOs and MUBs are increasingly attractive to landlords looking to maximise returns, and we want to make it easier for those new to these property types to get started and grow."
Russell Anderson, commercial director for mortgages, added: "This development is part of our ongoing strategy to enhance our offering and support the next generation of landlords. By making it easier for these landlords to place more specialist business with us, we’re broadening our reach while continuing to support the more experienced and larger-scale landlords we’re known for working with."
