Paragon mortgage lender review
The buy-to-let mortgage specialists
UK's 19th largest lender
Paragon lent just under £2bn in 2018. That's almost 1% of all mortgage lending.
31-day submission time
That's 15 days slower than the average of 25 lenders we measured.
Paragon was founded in 1985 and in the same year launched its first buy-to-let mortgage product. Paragon joined the London Stock Exchange in 1989 as a FTSE 250 listed company.
Paragon offer a range of specialist buy-to-let mortgages and other types of mortgages, including second charge mortgages, through a selected panel of intermediaries.
We’ve reviewed some of the UK’s top mortgage lenders and measured their service, application speed and affordability.
In this review we’ll cover:
All information on this page was up to date as of August 2019.
Is Paragon a good mortgage lender?
There are many ways to measure how good a lender is. We've chosen to focus on publicly available complaints data to estimate their quality of service.
We looked at Paragon’s customer complaints record between July and December 2018.(1) During this period, the Financial Conduct Authority (FCA) received 421 officially upheld complaints. That’s around 0.6% of customers, which is slightly higher than the 0.4% average across the major lenders.
How long does a Paragon mortgage application take?
During the last six months, the average speed that Paragon processed a Trussle customer’s successful mortgage application was 31 days. That’s slower than the 16-day average across all the lenders we’ve submitted applications to.
Bear in mind that the speed of application will vary depending on your own personal circumstances and the lender’s present day-to-day performance. In some cases, applications can be approved by the lender within 24 hours, while some can take weeks or even months. This can also be impacted by the quality of the application submitted, which is why you may want to consider using a mortgage broker. The average quoted speed therefore may not reflect your own experience.
How much could I afford to borrow from Paragon?
We don’t have access to this data at the moment, but the amount you can borrow will depend on the mortgage type and your financial circumstances.
You’ll find Paragon’s mortgage calculator on their website – this will give you an estimate of how much you may be able to borrow.
Frequently asked questions (FAQs)
What types of mortgages do Paragon offer?
Paragon offers a range of mortgages, including specialist buy-to-let and second charge mortgages.
A number of BLT mortgages are available through Paragon’s intermediaries – including options for both portfolio and non-portfolio landlords.
Paragon’s second charge mortgages are available to eligible existing homeowners in England, Wales and mainland Scotland. Again, these loans are provided through intermediaries.
What is Paragon’s mortgage lending criteria?
Paragon outlines its key portfolio criteria on its website. For example:
Applicant(s) should have a minimum combined gross annual income of £25,000 per annum.
The minimum loan amount is £30,000.
You must be minimum 21 years old and maximum 85 years old at the end of the mortgage term.
Contact Paragon directly to enquire about the specifics of their lending criteria.
Do Paragon do commercial mortgages too?
Paragon offers a range of solutions tailored around its business customers’ needs – including development finance for property developments and buy-to-let mortgages for landlords in limited companies.
Can I make overpayments on my Paragon mortgage?
Yes. You can make regular overpayments by by asking Paragon to increase the monthly direct debit they collect from your bank account.
If you overpay during the early repayment charge (ERC) period, you may have to pay a fee.
Do Paragon offer mortgage payment holidays?
Paragon don’t currently offer mortgage payment holidays, but they urge anyone who is struggling to meet their payments to contact them directly on 0345 149 7751.
What should I do when my Paragon mortgage deal ends?
If you want to transfer to a new product once your mortgage term expires you’ll need to
log in to your online account and follow the on-screen prompts. The products available to you will depend on the property type and if you’re a non-portfolio or portfolio landlord.
Do Paragon offer online banking?
Yes, you can manage your mortgage account and view statements etc online by creating a personal account.
What are Paragon Mortgages’ contact details?
If you have a question about any of Paragon’s mortgage products, you can contact their New Business Enquiries team by calling 0345 849 4040 (9am to 5pm Mon to Fri except Wednesdays when the team starts at 9:30am).
Alternatively you can email them at [email protected]
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