Lenders See Rogue Landlord Database
A prominent buy to let mortgage chief says lenders should be able to access the rogue landlord database launched last year.
John Heron of Paragon Mortgages, writing on the Bridging and Commercial website, says the database may take some time to become fully established but will become “a valuable resource as it grows.”
Heron says the government’s recent consultation includes plans to give current and prospective tenants the opportunity to view information on the database to help them make an informed choice on who to rent from – but he says broadening access to lenders for underwriting purposes would be another important step forward.
“Great progress has been made by the industry since the introduction of the Prudential Regulation Authority guidelines for underwriting more complex portfolio buy to let” explains Heron.
“Lenders are looking well beyond the property in question at the wider profile of the landlord and their property holdings. In this process, lenders have significant social responsibilities to address to ensure that we support landlords who provide safe and good quality homes for their tenants.”
And he adds: “It is in no one’s interest to let unfit landlords operate in the UK’s private rental sector, and by granting lenders access to the rouge landlord database, lenders can fulfill a vital function in making sure rogue landlords are starved of the oxygen of finance.”