Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Mortgage lender Paragon launches banking business

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 or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow's Evenlode Income fund was recently removed from the Investment Association's UK Equity Income sector.

Play GAM charity football tournament: the live draw

GAM charity football tournament: the live draw

Former Chelsea and England footballer Graeme Le Saux visits Citywire to make the draw for the tournament, where all proceeds going to Wheels for Wellbeing.

Play FIFA, Panama Papers…and what everyone’s getting wrong

FIFA, Panama Papers…and what everyone’s getting wrong

VIDEO: Investigative reporter Jeffrey Robinson reveals how major corruption scandals are being mishandled and what to expect next.

Your Business: Cover Star Club

Profile: JPM Wealth MD on breaking the glass ceiling

Profile: JPM Wealth MD on breaking the glass ceiling

During her tenure at JP Morgan, the private bank has changed the way it segments clients in a bid to improve focus

Wealth Manager on Twitter