You are here: Home - News -

Paradigm and Legal and General Mortgage Club provide online BTL guidance for advisers

by: Chris Menon
  • 02/10/2017
  • 0
Paradigm and Legal and General Mortgage Club provide online BTL guidance for advisers
Paradigm Mortgage Services and Legal and General Mortgage Club have each developed online materials to help advisers active in the buy-to-let market better understand the affects of the Prudential Regulation Authority’s portfolio landlord underwriting changes.

As of the 30 September, the PRA definition of a ‘portfolio landlord’ as one who has four or more mortgaged buy-to-let properties is applicable, however lenders may have different interpretations of that definition.

Paradigm is providing a buy-to-let ‘Lender Criteria Matrix’ document, which gives information on each buy-to-let lender’s portfolio landlord underwriting policies, is fully up-to-date and lists all lender panel members.

To accompany this, Paradigm has also produced a rental calculation document which shows all those lenders on the Paradigm panel and their current rental calculations and interest coverage ratio (ICR) stress tests.

In addition, Paradigm has created an example of a portfolio landlord business plan that covers off the current, and future, investment strategy details and can be used to provide information on the landlords’ properties such as location, type, tenant profile, property management, supporting business infrastructure, rent to cost model, and details of any professional service providers.

Paradigm also has a Q&A factsheet with a number of lender panel member representatives, which provide details on how those lenders’ changes and how they will approach post-PRA portfolio landlord lending and underwriting. Finally, there are a number of specific buy-to-let guides for members including a ‘Top tips’ on helping alleviate the work with such cases, and access to a number of Government Guides for landlord clients.

The lender has promised that all information will be kept up to date on the Paradigm Mortgage Services’ website 

Similarly, Legal and General Mortgage Club has updated its Buy to Let Matrix to include all lender criteria on buy to let portfolios.

Its Matrix now includes lenders that have most recently updated their details and will accept portfolio landlords and limited company buy to let. It has promised the Matrix will be continue to be updated if lenders announce any further changes to their criteria.

Comments

John Coffield, head of Paradigm Mortgage Services, said: “There have been a number of predictions about how these changes would affect the market and now we will truly find out. Let’s not forget that not all lenders are PRA-authorised and there should be limited changes from this group, plus we at Paradigm are willing and able to support members as they get to grips with – what could be – a tricky introduction period. If advisers are in any doubts, they should feel free to contact our Mortgage Helpdesk where we will be more than happy to help you.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Pepper Money revamps products and opens online portal

Pepper Money, previously known as Pepper Homeloans, has revamped its product range and gone live with a new online portal.

Close