Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a734907

Mortgage lender Paragon launches banking business

by David Campbell on Feb 18, 2014 at 07:41

Mortgage lender Paragon launches banking business

Niche credit and financial services business Paragon Group has announced that it is to launch a dedicated full-service bank following approval by the Prudential Regulation Authority.

The company has so far dedicated £12.7 million in initial capital to Paragon Bank and expects to provide additional capital as required to support growth. At 8.20 shares in Paragon Group were up 3.18% to 376p.

Chief executive at launch will be Richard Doe, formerly head of ING Direct UK.

The group remains best known for its position pre-crash as one of the UK’s leading independent mortgage providers, with a particular strength in buy-to-let business, and also offers low-cost credit services.

Dependent on wholesale funding markets to turn over its borrowing, the company had a near-death experience in 2007 but pulled through following a successful rights issue and restructuring in 2008.

‘Today’s launch of Paragon Bank marks an exciting development for the group,’ said Nigel Terrington, group chief executive.

‘[It] represents the third leg of the strategy, joining Paragon Mortgages, the buy-to-let lending business and Idem Capital, the debt purchase business.  The establishment of Paragon Bank facilitates a return to consumer finance lending, benefitting from the Group’s heritage, expertise and scale as a low-cost specialist lender. 

The company will initially focus on lending, with saving products expected to launch toward the end of the first quarter.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the shares

  • The Paragon Group of Companies PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet