Paragon Mortgages has begun accepting applications for consumer buy-to-let via its sister brand Mortgage Trust.
The buy-to-let specialist’s online application system is now live and ready for intermediaries to submit consumer buy-to-let applications, ahead of Mortgage Credit Directive (MCD) implementation on 21 March.
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.
This may impact certain applications, for example a first-time landlord who is remortgaging a property they have inherited and decided to rent out, but who is not already a landlord.
It may also affect a first-time landlord who decides not to sell their existing home but rent it out instead, financed with a buy-to-let mortgage.
John Heron, Paragon 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.
“While 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.”