Paragon Mortgages launches into residential market

Paragon Mortgages has entered the residential mortgage market after announcing the launch of a new range of products for owner-occupiers. 

The lender, which is best-known for its activity in the buy-to-let market, says it is aiming to increase competition and choice for consumers.

The group says that older borrowers and those that are self-employed are often deemed too 'complicated' and are faced with a limited product choice as a result. 

With this in mind, Paragon says it will assess each case on an individual basis. 

The lender's first residential products include two and five-year fixed-rate mortgages available at 75% and 85% loan-to-value. Interest rates have been set at 3.29% for two-year products and 3.49% for five-year products.

The residential launch is in partnership with Legal & General Mortgage Club and products will be distributed via three of Legal & General's intermediary partners.

“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,” comments John Heron, managing director of Paragon.

Jeremy Duncombe, director of Legal & General Mortgage Club, adds: “We are delighted to see Paragon enter the specialist residential market, and welcome the further competition they will bring to the 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."