MortgagesOct 1 2014

Paragon extends tenancy lengths for BTL mortgages

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Paragon has made changes to its criteria, allowing landlords to offer longer tenancies of up to 36 months to help families.

John Heron, managing director of Paragon Mortgages, said: “The private rented sector is the fastest growing sector in the housing market, and an increasing number of families rely on it for their home.

“At the same time, many tenants continue to value the flexibility and choice the PRS delivers. This is why we welcome the housing minister’s approach in the new model tenancy agreement, as it recognises that some PRS tenants will still require that flexibility, but others need greater security.”

The buy-to-let lender changed its lending criteria as the government pushed for family friendly tenancies.

Adviser view

Dale Jannels, managing director of All Types of Mortgages, said: “I think it is a great solution to what seems to be an increasing demand from both families and landlords. Families need to plan, and longer-term contracts enable stability and comfort.

“It is also better for landlords who don’t have to worry every six months whether their tenants will re-sign or not.

“My only concern, without seeing the detailed terms and conditions, is how the longer-term contracts will protect both the landlord and the families should there be non-payment and if they will cover a requirement for a break clause.”