Closure is in line with the group's strategy of prioritising investment in its core operations
The Paragon Banking Group has announced that The Business Mortgage Company (TBMC) will be closing operations and will no longer accept new applications.
The closure of the Cardiff-based mortgage broker business follows a comprehensive review by Paragon, its parent company, and is in line with the group’s strategy of prioritising investment in its core operations.
Paragon said the closure would impact a small number of employees but would have no impact on the performance of the wider group as it did not make a material contribution to Paragon’s profits, and would have no impact on the level of buy-to-let business Paragon Bank receives.
To ensure a seamless transition, all applications currently in the pipeline would be processed through the normal channels, Paragon said.
“We appreciate this is difficult news for our colleagues at TBMC, and I thank Jane Simpson and her team for the service they have given to the company over the years,” stated Richard Rowntree (pictured), managing director of mortgages at Paragon Bank.
“Paragon’s mortgage distribution model has evolved and broadened significantly since TBMC was acquired in 2007 and, as such, TBMC is today considered a non-core operation. As one of the leading buy-to-let lenders in the UK, our strategy remains focussed on growing lending in specialist segments of the market, particularly in areas where larger banks fail to adequately serve customers.”
Paragon announced its half-year results last month, with new mortgage lending standing at £1.02 billion and its buy-to-let loan book increasing to £12.6 billion.
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