More RBS loans dribble through to Paragon

Resurgent buy-to-let mortgage specialist Paragon has bought another parcel of unsecured consumer loans from the Royal Bank of Scotland (RBS).

Before tax-payers start celebrating a cash windfall for the part-nationalised lender, The Paragon Group of Companies is paying just £32,000 for the loans under the terms of a forward flow agreement it has with RBS.

A spokeswoman for Paragon told Sharecast that the deal was a tiny one that the group is obliged to report, and follows on from the acquisition last year of a portfolio of loans from The Royal Bank of Scotland for consideration of £43.2m.

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"Whilst the transaction value is considered by Paragon to be modest, [the Financial Services Authority's regulation] LR10.2.10 requires the aggregation of all transactions between Paragon and The Royal Bank of Scotland PLC during the past twelve months in classifying this transaction," Paragon's announcement said.

JH