Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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
Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter