Your guide to Paragon for intermediaries

Mortgage brokers or intermediaries serve as the middleman that connects aspiring home buyers to banks or mortgage providers in the United Kingdom. They save their clients from the trouble of scouring for lenders, queuing for phone calls, and other inconveniences. As such, intermediaries play a major role in securing a mortgage for eligible borrowers.

If you plan on entering the mortgage industry by working as an intermediary, you need to build connections with stakeholders such as big banks and lending institutions. Partnering with mortgage providers such as Paragon for intermediaries will help you and your clients search for home loans with affordable rates and competitive deals.

In this article, Mortgage Introducer will explore everything you need to know about Paragon for intermediaries. We will talk about their background and how they can help intermediaries in the country. We will also review their eligibility criteria as well as some of their mortgage products and services.

Introduction to Paragon for intermediaries

Paragon for intermediaries is the intermediary-only platform of Paragon Bank plc. It is a specialist lender and savings bank that is a subsidiary of the Paragon Banking Group plc. The latter is one of the country's biggest providers of mortgages, savings accounts, and other financial services.

Paragon Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA). It is registered in England and offers services such as:

• savings accounts: savings, fixed rate, and access
• cash ISAs: fixed rate, access, and lifetime ISA

How does Paragon for intermediaries support their partners?

Paragon for intermediaries has an exclusive website where mortgage brokers and financial advisors can access tools and guides. They can also check the lending criteria and compare the benefits and features of Paragon for intermediaries’ mortgage products.

Intermediaries can find most, if not all, the information that they need should they decide to partner with Paragon.

Getting in touch with Paragon for intermediaries

It is well known in the industry that home loan providers have dedicated broker-only help lines for intermediaries. These help lines allow intermediaries to connect with the lending bank more quickly.

With this, Paragon for intermediaries has made it easier for mortgage brokers to contact them by providing a phone number on their online portal. For any concerns or questions that you might have about any of their mortgage products, Paragon for intermediaries is encouraging their partner brokers to contact their New Business Enquiries team.

They have also provided their email and postal addresses where you can send your inquiries online or via mail. You can also go to any of Paragon Bank’s branches if you wish to bring your concerns in person.

Not only is getting in touch with this lender easy, but you can expect award-winning service if you decide to work with Paragon for intermediaries. The same is true for the top intermediaries in the UK.

Types of clients

Paragon for intermediaries offers mortgage solutions to intermediaries with these types of clients:

• first time landlords
• experienced portfolio landlords
• limited company landlords

They also provide lending services to a wide range of property types. They allow mortgage applications for straightforward single self-contained properties or more complex large houses in multiple occupation (HMOs) and muti-unit blocks (MUBs). Their diverse selection of mortgage products features competitive interest rates that will suit the financial capacity of your clients.

Curious to learn about other mortgage lenders’ home loan rates? You can bookmark our guide to mortgage rates to find out the latest mortgage rates from all the top UK banks and mortgage lenders. Check back weekly or favourite this page to keep an eye on the mortgage industry’s ever-changing rates.

Eligibility criteria set by Paragon for intermediaries

Here are some of Paragon for intermediaries' eligibility criteria for potential borrowers:

1. age
2. income
3. property valuation

Let us go in-depth with each requirement:

1. Age

The minimum age requirement set by Paragon for intermediaries is 21 years old at the beginning of the mortgage term. Meanwhile, the maximum age requirement is 85 years old at the end of the mortgage term.

2. Income

As for the income, Paragon for intermediaries requires their clients to have a minimum combined gross annual income of £25,000 per annum. All types of income must be proven by evidence such as:

• gross employment income
• taxable self-employed income
• occupational or private pension income
• state pension income

As for landlords’ income structure, Paragon for intermediaries considers its complexities. If a landlord or limited company has four or more properties and is unable to meet the £25,000 income, they will review and evaluate the applications on a case-by-case basis. The landlord or limited company must prove that they have enough income to cover their existing expenses.

3. Property valuation

Paragon for intermediaries has a minimum property valuation of £75,000. They will consider mortgage applications for the following properties:

• single self-contained properties
• properties divided into a maximum of 20 units
• houses in multiple occupation (HMOs)

For multi-unit properties and HMOs, landlords must have at least two years of experience in letting.

Paragon for intermediaries’ mortgage products and services

After going over some of Paragon for intermediaries’ requirements, the next step is to get to know their mortgage offerings. We have listed some of their flagship products such as:

1. Buy to Let mortgage
2. mortgage for HMOs and MUBs
3. Refurb to Let mortgage
4. Product Switch
5. Further Advance

Let’s take a closer look at each of Paragon for intermediaries’ mortgage products below:

1. Buy to Let mortgage

Paragon for intermediaries has been constantly refining their Buy to Let home loan products and services. Currently, they offer free mortgage valuations across all their Buy to Let mortgage options.

Paragon for intermediaries offers Buy to Let home loan products for these types of clients:

• landlords with three or fewer Buy to Let properties
• landlords with four or more Buy to Let properties
• limited companies

2. Mortgage for HMOs and MUBs

When it comes to HMOs and MUBs, Paragon for intermediaries will help you find the most suitable mortgage for your landlord clients. If you have clients who have any of these property types from the list below, you can apply for a home loan with this lender:

• HMOs and MUBs up to 20 rooms and units
• multiple kitchens and locks on doors
• single or multiple tenancies

Paragon for intermediaries will also accept mortgage applications for HMO and multi-unit block hybrids. As for tenants, they will accept:

• students
• young professionals
• benefit recipients

This mortgage provider will also consider up to 20 self-contained flats under one freehold title as well as freehold blocks with a maximum of 50% of the units having been sold on individual tenancies.

Learn more about Paragon for intermediaries’ specialist mortgage products for HMOs and MUBs in this video:

To make a name for yourself in the mortgage industry, do two things: partner with the right lender and find a role model. Use our intermediaries guides like this one and read our report on the best mortgage brokers for 2024.

3. Refurb to Let mortgage

Paragon for intermediaries also has a Refurb to Let product. This is tailor-made for landlords who are looking to update their property. They are provided with a wide selection of rates and terms available, plus the ability to apply for a Buy to Let application at the same time.

If you apply for Refurb to Let and Buy to Let mortgages, both applications will be reviewed at the same time. As such, you can expect faster processing times with the expertise of the same underwriter assessing both property loan solutions.

What properties should a Refurb to Let mortgage be used for?

The Refurb to Let mortgage product is ideal for properties that require modernisation but not structural changes. In other words, this option is ideal for properties where no planning permission and building regulations are needed. It is also suitable for small HMO adaptations.

Intermediaries who wish to apply for a Refurb to Let mortgage have access to the following perks for their clients:

• mortgage terms of one to six months
• roll-up or serviced monthly payments
• up to 75% loan-to-value (LTV) ratio

4. Product switch

You can apply for a new home loan for your client up to three months ahead of their current mortgage maturing with Paragon for intermediaries’ Product Switch. If your client’s mortgage is coming to an end, you can help them with a smooth transition to their next mortgage. Check out some of Product Switch’s features and benefits:

• 0.40% procuration fee for every Product Switch
• access to Paragon for intermediaries’ Track to Fix feature

Track to Fix

Track to Fix is a feature available on all discounted variable Buy to Let mortgages offered by Paragon for intermediaries. This option allows landlords to benefit from the current rates and offers on discounted mortgages with the flexibility to switch to a fixed rate later, all without early repayment charges. 

5. Further Advance

Further advance provides additional funding to help your client achieve their real estate goals—whether it is making energy efficiency improvements or expanding their portfolio.

As for Further Advance’s features and perks, one is that your landlord client can raise capital to expand their property portfolio. They can also release money to make improvements to their existing properties. What about your benefit as an intermediary? Don't worry – you will receive a 0.40% procuration for every Further Advance application that you make.

Why should intermediaries work with Paragon?

Paragon for intermediaries is a good lender to work with due to their intermediary-focused online portal and simplified mortgage applications. They also have many guides and tools that you can use when exploring their home loan selections for your clients.

Mortgage brokers can place their trust in mortgage providers like Paragon for intermediaries because they have been in the mortgage industry for quite some time and are already well established. Working with this lender will not only help you find the right mortgage product for your client, but it can also help boost your career as an intermediary.

If you secure a mortgage for your client with Paragon for intermediaries, you can be sure that they will provide top-notch service and competitive interest rates. They can prove to be the right home loan provider that can help your clients in their homeownership journey. At the same time, they can also push you to new heights in your career.

If you think that Paragon might not be the right lender for your clients’ mortgage needs, we have other guides for lenders with intermediary-only platforms. Feel free to look up some of them below:

• Your guide to Accord for intermediaries
• Your guide to Aldermore for intermediaries
• Your guide to Barclays for intermediaries
• Your guide to Coventry for intermediaries
• Your guide to HSBC for intermediaries
• Your guide to Kent Reliance for intermediaries
• Your guide to Leeds for intermediaries
• Your guide to Nationwide for intermediaries
• Your guide to NatWest for intermediaries
• Your guide to Skipton for intermediaries
• Your guide to Virgin for intermediaries
• Your guide to the Mortgage Works for intermediaries
• Your guide to the West Brom for intermediaries

Do you agree that Paragon for intermediaries would be a good lender to work with? Let us know in the comments section below.