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Paragon increases procuration fee for brokers

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Paragon Bank has announced that brokers introducing product switches to the specialist lender's other buy-to-let mortgages will receive an increased procuration fee.

Brokers will now get a proc fee of 0.40%, previously 0.30%, for every product switch booked from 1 March onwards.

The increase comes following news that Paragon has extended the window, from three to six months, in which borrowers with buy-to-let mortgages reaching maturity can switch products.

Director of Mortgage Sales, Moray Hulme, said: “We know that 2022 will see a large number of mortgages reach maturity and at a time of considerable economic uncertainty, a significant number of landlords will seek to switch over to a new, competitively priced product at the earliest opportunity.

“This latest measure is part of our wider work, where we’ve adapted both products and processes, to support these landlords.

“We recognise that brokers play an important part in this too - the amount of work that goes into placing a product switch can be almost that of placing a new mortgage - so the increased procurement fee is to reflect the value of the intermediary in the process.”

With rates starting at 2.95%, Paragon has a range of two-year and five-year fixed-rate products aimed at those looking to switch to a new loan.

Products are available for non-portfolio landlords wishing to finance single self-contained units (SSC) and for portfolio landlords - those with four or more mortgaged properties – borrowing on houses in multiple occupation (HMO), multi-unit blocks (MUB) and those operating as limited companies or limited liability partnerships.

For further information contact:

Jordan Lott
Media Relations Manager
Paragon

Tel: 0121 712 2319

Notes to editors:

Paragon lends to private individuals and limited companies and has mortgages suitable for single, self-contained properties, as well as HMOs and multi-unit blocks. Paragon can accommodate higher aggregate lending limits and more complex letting arrangements including local authority leases and corporate leases along with standard ASTs.

Paragon introduced its first product aimed at the professional property investor in 1995 and is a member of UK Finance, the Intermediary Mortgage Lenders Association (IMLA), National Landlords Association (NLA) and the Association of Residential Letting Agents (ARLA). 

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £12 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551