Paragon Bank has announced a new, streamlined buy-to-let mortgage application process aimed at landlords with up to 15 properties. This change is expected to simplify the process and reduce the time needed to secure lending.
At the heart of this update is a reduction in the number of supporting documents landlords must provide when applying. By removing some of the paperwork, Paragon hopes to make it easier for landlords to navigate the application journey.
The bank is making the most of its new mortgage origination platform, which can automatically pre-populate much of the required application information. This not only speeds things up but also cuts down on repetitive data entry for landlords.
For most applicants, Paragon will initially only ask for a valuation of the property and, if the landlord owns more than three buy-to-let properties, a property schedule. This keeps the process straightforward while still ensuring necessary checks are in place.
The lender says this new approach is suitable for both individual landlords and those applying through limited companies. It covers portfolios of up to 15 properties, single self-contained units, and borrowers seeking up to 75% loan-to-value.
Additionally, this process applies to landlords with up to £2 million exposure with Paragon, ensuring it remains focused on those with small to medium-sized portfolios rather than large-scale landlords.
To help make applications even smoother, Paragon’s system now connects with data sources such as Companies House, Experian, and Hometrack. This integration means property details and applicant information can be checked and validated more efficiently.
An improvement has also been made to the validation of property schedules. Once uploaded, these documents are securely stored to make future applications quicker and easier for returning landlords.
Importantly, this streamlined journey removes the need for most landlords who fit the criteria to provide documents like payslips, tax returns, or rental bank statements. For limited company applicants, the usual two years of accounts may also no longer be required.
Paragon is keen to reassure landlords, however, that every application will continue to be fully underwritten. Further documents may still be requested if they’re needed to support a lending decision.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, explained the motivation behind the changes. She highlighted that buy-to-let lending is “in our DNA,” and the bank aims to adapt continually to meet the needs of the market.
She noted that while Paragon has built its reputation as a specialist lender for complex buy-to-let cases, it also recognises the importance of supporting landlords with smaller portfolios and simpler requirements.
The recent launch of Paragon’s mortgage origination system earlier this year played a key role in making this update possible. This technology has allowed the bank to customise the application process for different groups of landlords.
According to Sedgwick, landlords with straightforward buy-to-let applications or smaller portfolios shouldn’t have to face the same complex processes as those with larger, more complicated arrangements.
She concluded by saying that this change demonstrates Paragon’s commitment to evolving with the needs of landlords. By simplifying the journey, the bank hopes to offer quicker decisions and reduce hassle, helping landlords focus on managing their properties.
Overall, the move signals a positive step for landlords seeking efficiency without sacrificing thorough underwriting, and it reinforces Paragon’s position as a flexible lender in the buy-to-let market.