Paragon enters residential mortgage market

Paragon enters residential mortgage market

Paragon Mortgages has unveiled its first residential products designed for customers with complex incomes in specialist segments of the owner-occupied market.

Provided by Paragon Group’s banking subsidiary, Paragon Bank, the first products include two- and five-year fixed rate mortgages available at 75 per cent and 85 per cent loan-to-value.

Interest rates begin at 3.29 per cent for two-year products and 3.49 per cent for five-year products.

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John Heron, managing director of Paragon Mortgages, said: “Customers with complex incomes looking for a residential mortgage deserve access to a wider choice of mortgage products and to specialist underwriting that recognises their unique circumstances.

“From our experience in the buy-to-let market, we know that customers with multiple sources of income are often amongst the most credit-worthy and we see a unique opportunity to leverage this experience and bring new choice and competition to the owner-occupied market.”

Paragon said its team of underwriters will address the limited product choice some borrowers face by working closely with mortgage advisers, assessing each case on an individual basis.

The products will be distributed through three of Legal & General’s intermediary partners.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “We are delighted to see Paragon enter the specialist residential market, and welcome the further competition they will bring to the residential mortgage market.

"Their detailed approach to underwriting, and experience in lending to complex customers, will be a real asset both to brokers, and customers who struggle to find products with high-street lenders.

“Legal & General Mortgage Club strive to continue to bring choice and competition to the market for our brokers, and Paragon will be a great addition to our proposition.”