Paragon Mortgages enters residential mortgage market

Paragon Mortgages has expanded its offering from buy to let lending, and has launched into the residential mortgage market for the first time.

The lender is looking to serve residential borrowers with complex incomes in specialist segments of the market, such as the self-employed or those borrowing into retirement.

Paragon explained in a statement that these customers are often considered too complicated by mainstream lenders and face limited product choice as a result. It says that its team of underwriters hope to address this issue by working closely with mortgage advisers to support customers, assessing each case on an individual basis.

As part of the launch, Paragon is advertising two and five-year rate loans which start at 3.29% for a 75% loan-to-value (LTV) mortgage and 3.49% for a 85% LTV mortgage.

The loans, which will be provided by Paragon Bank, will initially be available through three of the Legal & General Mortgage Club brokers.

John Heron, managing director, Paragon Mortgages said:

“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.”

Jeremy Duncombe, director, 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.”

In similar news, Foundation Home Loans and New Street Mortgages said they also had plans to enter the residential market this year.