The Group’s roots date back to 1985 when we launched as a centralised lender offering residential mortgages and consumer and business finance. However, the Group has come a long way since those early days and we are now firmly established as a leading mortgage lender to residential property investors and specialist third party loan servicer.
Origination
It was the burgeoning buy-to-let market that was the spur for the growth in the Group’s origination businesses. In 1995, we recognised the increasing level of demand from investors looking to purchase residential property to let, buoyed by a change in legislation surrounding rental levels and the establishment of recognised contracts between tenants and landlords, and launched our first buy-to-let mortgage products.
The business flourished and saw assets under management grow from £1 billion in 1996 to over £8 billion a decade later. In 2003, we expanded our buy-to-let offering with the acquisition of Mortgage Trust, which complemented Paragon Mortgages’ professional landlord offering by catering for landlords with smaller portfolios, typically consisting of three or less properties.
Paragon was the first company to securitise in the UK and is currently the UK’s most prolific issuer of residential mortgage-backed securities, with 54 transactions completed and a total issuance of £20 billion.
Concurrent to the Group’s thriving buy-to-let offering, Paragon also established a highly successful secured consumer loan business called Paragon Personal Finance.
Servicing
The Group has over 20 years’ experience in mortgage and loan portfolio management. In addition to managing our own assets, we also manage assets on behalf of a number of lender clients, including building societies, commercial banks, investment banks, private equity houses and specialist lenders. Our strong track record in managing multiple asset-classes and our expertise in complex securitisation, capital markets and ‘value-added’ corporate finance transactions is renowned.
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