Paragon Banking Group

Paragon Banking Group PLC
TypePublic
IndustryBanking and Finance
Founded1985
HeadquartersSolihull, West Midlands, United Kingdom
Key peopleRobert East, Chairman
Nigel Terrington, CEO
RevenueDecrease £1,249.0 million (2025)
Increase £256.5 million (2025)
Decrease £180.3 million (2025)
Websitewww.paragonbankinggroup.co.uk/

Paragon Banking Group PLC is one of the United Kingdom's largest providers of buy-to-let mortgages, and savings accounts. Based in Solihull, the company and offers lending to landlords and businesses and also offers savings accounts to consumers. It is also one of the UK's largest independent provider of mortgages to residential property investors in the UK Private Rented Sector. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

History

The company was established in 1985 as the National Home Loans Corporation. After growing rapidly in the late 1980s, the company got into serious financial difficulties during the early 1990s recession and nearly went bankrupt.

The company launched Homeloans Direct in 1995 and changed its name to the Paragon Group of Companies in 1997. In 2003 it acquired Britannic Money, which had been the lending arm of Britannic Assurance.

The company got into deep financial difficulty during the 2008 financial crisis when it had difficulty renewing a £280m credit facility which matured in February 2008. Having no deposit base at that time, unlike a commercial bank, it was forced to resort to a deeply discounted rights issue, raising upto £287 million, which was fully underwritten by UBS. It had to withdraw from the buy-to-let market and only returned to that market, supported by a £200m debt facility provided by Macquarie Bank, in September 2010.

In February 2014, the Paragon Group of Companies PLC launched Paragon Bank which offers a range of internet-based savings accounts and car finance. The move followed calls from the Competition Commission for more competition in the UK banking sector.

In September 2017, it changed its name to Paragon Banking Group PLC, as part of becoming a "fully integrated banking business", rather than an organisation focussed on the buy-to let market.

In July 2018, Paragon Banking Group completed a £48m takeover of residential lender, Titlestone Property Finance, which served small and medium-sized residential property developers. At that time it was also revealed that the company was significantly exposed to the payment protection insurance miss-selling scandal. It was disclosed in a court case that 76% of the insurance premium paid by one customer was actually an undisclosed commission to Paragon. The company subsequently confirmed that it would not appeal the court's ruling requiring it to pay compensation to the customer.

In June 2025, it was revealed that the company, along with Lloyds Banking Group, Santander UK, Close Brothers and Investec, was one of the banks most exposed to the motor finance scandal where banks failed to disclose discretionary commissions to customers. Paragon confirmed that it had set aside £6.5 million to deal with the scandal.

Operations

The company is based in Solihull and offers lending to landlords and businesses and also offers savings accounts to consumers. It is also one of the UK's largest independent provider of mortgages to residential property investors in the UK Private Rented Sector.

References

  1. 1 2 3 "Annual Report 2025". Paragon. Retrieved 28 January 2026.
  2. ↑ "Record Paragon Banking Group profits ease buy-to-let fears". The Times. 6 June 2023. Retrieved 24 August 2026.
  3. ↑ "What virtues are there in Paragon?". The Guardian. 17 August 2003. Retrieved 24 August 2026.
  4. ↑ "Paragon Mortgages". U switch. Archived from the original on 12 June 2015.
  5. ↑ "Paragon Banking Group". Companies House. Retrieved 28 March 2018.
  6. ↑ "Paragon eyeing up Britannic Money". Daily Telegraph. 25 May 2003. Retrieved 24 August 2026.
  7. ↑ "Paragon bites the bullet". Investors' Chronicle. 11 January 2008. Retrieved 24 August 2026.
  8. ↑ "Paragon returns to buy-to-let market". BBC News. 28 September 2010. Retrieved 24 August 2026.
  9. ↑ "Midland firm launches Britain's newest bank". Business Live. 18 February 2014. Retrieved 24 August 2026.
  10. ↑ "Paragon Group changes name amid restructure". Credit Crunch. 22 September 2017. Retrieved 24 August 2026.
  11. ↑ "Paragon completes Titlestone takeover". Property Week. Retrieved 30 July 2018.
  12. ↑ "Landmark Plevin ruling could cost banks billions". APJ Solicitors. 3 July 2018. Retrieved 24 August 2026.
  13. ↑ "Exclusive: Britain's Paragon will not appeal landmark PPI case ruling". Reuters. 8 November 2018. Retrieved 24 August 2026.
  14. ↑ "'Significant proportion' of motor finance cases were illegal, FCA warns". The Banker. 9 September 2025. Retrieved 24 August 2026.
  15. ↑ "Paragon cushions £6.5m motor finance provision with broker-led lending". Motor Finance Online. 5 June 2025. Retrieved 24 August 2026.
  16. ↑ "Paragon Group of Companies – Written evidence". UK Parliament. 16 December 2015. Retrieved 24 August 2026.