Paragon Bank PLC was founded in 1985 and is part of the FTSE 250. They are a specialist lender and savings bank.
They have eight essential values that guide how they work and operate to let their customers know what to expect from the business they do with Paragon Bank and the service they receive from them.
These values are:
- Fairness
- Professionalism
- Integrity
- Humour
- Commitment
- Creativity
- Teamwork
- Respect
A number of the corporate entities within Paragon are regulated by either the PRA and the FCA or solely by the FCA. PBG has oversight of these entities as part of its overall responsibility for the management of the Group and also to ensure that the Group’s values and standards in regulated spheres are met.
Topics
Secured Homeowner Loan
Paragon Bank assesses the money coming in and going out for each customer who applies for a second charge mortgage – also known as a secured homeowner loan – with them.
To be eligible for this loan, you must have passed an affordability test and credit score. The property the customer wishes to secure the mortgage against must be in England, Wales or Mainland Scotland and must be their main home.
Paragon Bank will consider the value of the customer’s home before they offer a mortgage secured on it.
The representative example given by Paragon Bank is a total loan amount of £69,980 (including estimated broker fees of £2,995 and a product fee of £545). The term of the loan is 242 months at 4.69% (fixed for three years reverting to a variable rate of 4.30%).
The cost of credit is £39,239.82 with 36 monthly payments of £477.70 followed by 206 payments of £434.77, leaving the total amount repayable of £105,679.82 and 5.20% APRC.
Other Financial Services
Paragon Bank offer a range of loans to help their customers find the finance option right for them.
Intermediaries
For intermediaries they offer:
- Asset finance
- Development finance
- Motor finance
- Professions finance
Asset Finance
For more information on what needs to be included in proposals to Paragon Bank, updates on application status and how a settlement figure can be obtained for customers, Paragon have a range of numbers and online resources.
Development Finance
Paragon Bank have a range of development finance products offered to both intermediaries and business customers, including residential development finance, bridging finance, pre-planning finance, student accommodation development finance and marketing period loans.
As a UK regulated FTSE 250 bank, Paragon Bank will provide funding up to 70% GDV and 90% of the cost.
Residential development finance loans from £400,000 to £35 million with the repayment terms depending on the specific loan taken out.
Bridging finance is offered from £400,000 to £5 million with loan terms up to 15 months.
Pre-planning finance is offered from £400,000 to £5 million with loan terms up to 18 months.
Student accommodation development finance is offered up to £25 million with loan terms of 24 months.
Marketing period loans are available from £1 million to £7 million with loan terms up to 15 months.
Motor Finance
Through Paragon Bank’s network of UK based car dealers, they offer a range of competitive finance packages for new and used car buyers.
Finance is offered on cars, LCVs, motorhomes and caravans.
Information on these finance loans is offered once the intermediary has logged into their account with Paragon Bank.
Professions Finance
They provide a range of specialist finance solutions for businesses in the professional sectors. Their finance options are suitable for both SMEs and Partners (in large or small firms and practices).
Finance packages are offered for:
- Tax
- Insurance premium finance
- Subscriptions
- Partner exit loans
- Case purchase
- Business equipment
- Office refurbishment
- IT systems
Business Customers
Business customers are offered a range of finance options with:
- Asset finance
- Structured Lending
- Invoice Finance
Asset Finance
Paragon Bank provide specialist lending solutions to help UK businesses innovate, adapt and grow whether they’re investing in equipment, vehicles, machinery or technology.
The Recovery Loan Scheme supports finance for UK businesses as they recover from the COVID-19 pandemic. Paragon Bank can provide asset finance funding up to £2 million.
More information regarding their asset finance can be obtained by contacting Paragon Bank directly.
Structured Lending
Paragon Bank provides secured funding to help UK-based lending businesses grow their lending activities.
They offer Secured Revolving Credit Facilities from £5 million to £25 million, typically for up to three years.
Invoice Finance
Paragon Bank are specialists in cashflow solutions and work with businesses seeking additional working capital to support growth.
As soon as a customer’s business raises an invoice, Paragon Bank will advance up to 95% of the invoice value. When the customer’s customer pays, Paragon Bank then sends the remaining balance of the invoice minus any fees.
Paragon Bank Reviews and Ratings
Paragon Bank has received mixed reviews across sites such as Trustpilot, Smart Money People and Feefo. They have received a mixed number of reviews across these sites also.
Paragon Bank does have a Facebook page, but it has limited activity from the last year. This page has 554 likes and is followed by 597 people.
They also have a Twitter account, which is more active and has 508 followers.
Some customers have found Paragon Bank very easy to work with with a big range of product knowledge that has allowed them to help point their customers in the right direction for the best finance option for them.
A few customers were unsatisfied with the communication they received from Paragon Bank whilst trying to submit and process an application.
Trustpilot – 3.1/5 (Based on 276 reviews)
Smart Money People – 2.67/5 (Based on 46 reviews)
Feefo – 4.4/5 (Based on 1,344 reviews)
Pros
- Specialist services provided for intermediaries and businesses
- Competitive interest rates
- Has won awards for their services
- High figures available for finance with specific loans
Cons
- Limited information unless an account with Paragon Bank is made
- Mixed reviews on their service
- Large fees alongside loans
If you’re looking to compare offers on secured homeowner loans, then let HouseholdQuotes help you find the best loan available for you!
Click To Get QuotesFor more information on home improvement loans, read our guide.