Paragon is exiting the second charge mortgage market and will concentrate its mortgages offerings on its core buy-to-let activities.
The bank said it would honour the current applications in the pipeline and will accept new applications up until 5pm on Friday 21 May 2021.
The decision stems from the lender intending to focus its operation on its core buy-to-let range and it has no plans to return to the second charge market.
Loans Warehouse: Second charge lending up 242% annually
Paragon lent £54m in the seconds business in the last financial year (year ending Sept 2020), compared to £1.2bn in buy-to-let.
John Webb, managing director of seconds at Paragon, said: “I’d like to thank our brokers for the support they have shown to us over the last few years, many of whom I have worked with for over 30 years.
“I’d also like to thank the team at Paragon for their hard work and dedication over the last two decades.
“We hope that the team will take up alternative roles that are currently available in the group.”
