Paragon Mortgages has launched a range of mortgage products for residential customers with complex incomes in specialist segments of the owner-occupied market who might have problems getting a loan.
Provided by Paragon Group’s banking subsidiary, Paragon Bank, the first products to launch include two and five year fixed rate mortgages available at 75% and 85% loan-to-value. Interest rates begin at 3.29% for two year products and 3.49% for five year products.
Customers in specialist segments, including self-employed and those borrowing into retirement, are often considered too complicated by mainstream lenders and face limited product choice and innovation as a result.
The first phase of the launch, in partnership with Legal & General Mortgage Club, will see products distributed via three of Legal & General’s key intermediary partners.
John Heron, 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.”
Jeremy Duncombe, director at 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. Their detailed approach to underwriting, and experience in lending to complex customers, will be a real asset both to brokers, and customers who struggle to find products with high-street lenders.”
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