Paragon returns to resi lending
Paragon Mortgages has moved into residential lending as the buy-to-let market struggles with government measures cracking down on the market.
Paragon pledged to add competition and choice for customers with complex incomes, including the self-employed and those borrowing into retirement.
The first Paragon products will distributed via three of Legal & General’s key intermediary partners. From today the lender is offering 2 and 5-year fixes at 75% and 85% loan-to-value, with interest rates starting at 3.29% for two year products and 3.49% for five years.
John Heron (pictured), 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.”
The buy-to-let market has had to cope with a raft of regulatory changes, with the latest being stress tests from the Prudential Regulation Authority and the upcoming reduction in mortgage tax relief from 45% in April.
Stephen Smith, director of Legal & General Housing Partnerships, said: “We are very excited to announce our partnership with Paragon Mortgages and welcome their recent launch into the specialist residential market.
“We value finding suitably qualified partners with whom we can develop our products and services. By encouraging more competition and variety within this space, Paragon’s entrance into the market will allow brokers to find the best possible deals for their clients.
“The shape of the UK workforce is changing, with many self-employed borrowers having complex incomes.
“Paragon’s proven experience in the specialist market confirms to us that their personal approach to underwriting will help credit-worthy customers who struggle to find mortgages with high-street lenders.”