Residential mortgages

A mortgage is a loan that helps you to buy your house. By taking out a residential mortgage with Paragon, we agree to lend you an amount of money and in return we will secure the mortgage against the property that you’re buying. We also offer mortgages if you’re looking to remortgage your existing home and, dependent on the purpose, we may be able to lend additional money (often referred to as capital raising). Your mortgage adviser will discuss the repayment options, either interest only or repayment, to establish which is right for you. Once completed your mortgage payments are taken monthly by direct debit for the term of the mortgage. For more information about your options please speak to your mortgage adviser.

We can lend on properties that are either used as your main residence or a second home that you reside in for part of the year.

If you want to take out a mortgage with Paragon, you’ll need to contact your mortgage adviser. All our mortgages are sold through selected mortgage advisers.

If you’ve received a mortgage illustration from your mortgage adviser and wish to proceed, you will need to speak to your mortgage adviser who will then complete an online application with us.

Once we’ve received your online application from your mortgage adviser, we will underwrite this. Our underwriting assessment will include, but is not limited to, us carrying out a credit search on each person applying for the mortgage, system approval checks (including verifying your income) and obtaining a valuation (you may incur a cost for the valuation) on the property you are buying or remortgaging with us. Before we issue the offer, we’ll contact you to confirm the application information your adviser has provided. If your application is in joint names, we’ll need to speak to both of you. Once we’ve completed our underwriting assessment and our underwriters are satisfied the mortgage is affordable and meets our lending criteria, we’ll approve your application. Your offer will then be emailed directly to you, and a copy sent to your adviser. Please contact your adviser if you have any questions throughout this process.

Your mortgage offer pack will be sent to you by email, and in it you will receive:

• your mortgage offer letter
• our customer guide
• our Mortgage conditions
• your Mortgage Illustration
• our Tariff of mortgage charges
• a summary of your application
• a copy of the valuation report

If you have any questions about the information contained in your offer pack, please contact your mortgage adviser.

Once you’re happy with your offer, the process is straightforward whether you're purchasing or remortgaging. Please speak to your mortgage adviser who will be able to guide you through this or download our Customer Guide for more information.

You must have buildings insurance cover for your property for as long as you have the mortgage and we would strongly recommend maintaining this once the mortgage is paid off.

For more information about insuring your property, please see the ‘insuring your property’ section of our Customer Guide.

When purchasing a new home, or remortgaging your existing property, your mortgage starts when we release the funds to your conveyancer.

When your mortgage completes, we’ll write to you to tell you the date and amount of your first payment, the date of your subsequent monthly payments, and which bank account we’ll collect them from. You will have completed a direct debit instruction as part of your mortgage application process.

Collecting your first payment

We always collect your first payment in the month after the mortgage starts.

Your first payment will normally be due on the first working day of the month following completion. However, if the first working day of the month is within nine days of your completion date your first payment will be due on the ninth working day after completion. This is to give sufficient notice of your direct debit payment. To find out more about calculating your first payment please see our Customer Guide.

We offer different types of mortgage products with different interest rates. With some of our products there may be a charge if you repay all or part of the loan within a certain period of time. These are called early repayment charges. For more information about early repayment charges, please see our Customer Guide.

For all our other charges and standard costs, please see our Tariff of mortgage charges.

If you need to make a change to your mortgage after it has started, we can help you do this. Situations where you may need to change your mortgage could include:

• Moving house
• If you are moving home and need to start your new mortgage before your current home is sold
• Changing your monthly repayment date
• Changing your repayment strategy
• Transferring your property
• Applying for a Further Advance
• Switching your product
• Letting your property
• Making overpayments

For further information, please see our Customer Guide, or if you need to discuss making a change to your mortgage, please contact us on 0345 149 7764.