Paragon will implement portfolio buy-to-let changes from Monday ahead of the Prudential Regulation Authority’s new requirements on 30 September.
Paragon Mortgages will exclusively handle cases for portfolio landlords – those with four or more properties – as well as limited companies and complex property types.
Its other brand Mortgage Trust will service the more straightforward cases.
John Heron (pictured), managing director, Paragon Mortgages, said: “Currently, many lenders focus mainly on the rental income and value of the property they are lending against when underwriting buy-to-let property.
“At Paragon, we’ve always asked for information on all the properties a landlord holds and on the full range of their economic activity so that we can assess their business in the round and consider the impact of the new lending on their performance.
“Against this background, this implementation of the PRA Phase 2 changes should result in minimal change for intermediaries and their customers.”
The approach whereby Paragon Mortgages handles more complex cases and Mortgage Trust deals with simpler ones has happened for some time but this is the first time there has been a formal division.
From 30 September 2017 lenders must scrutinise portfolio landlords’ full portfolio of properties and outstanding mortgages in addition to the standard assessment.