Paragon renews warehouse facility with Macquarie
In a sign of the times, mortgage provider the Paragon Group of Companies has seen its warehouse loan facility with Australian finance house Macquarie Bank renewed at a higher level.
In a sign of the times, mortgage provider the Paragon Group of Companies has seen its warehouse loan facility with Australian finance house Macquarie Bank renewed at a higher level.
The company, which serves the buy-to-let market in Britain, said the facility has been increased from £200m to £250m. Interest will be charged on the amount drawn at an unchanged rate of three-month London Interbank Offered Rate (LIBOR) plus 2.875 percentage points.
Paragon uses warehouse facilities to originate and aggregate mortgage loans, where they are held for a limited period prior to long-term funding in the mortgage backed securitisation markets. Paragon recently completed its latest securitisation, PM17, amounting to £200m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company more or less went into hibernation during the credit crunch in the second half of the last decade, as the wholesale loan markets dried up, but has been building up steam in recent years, as landlords seek to capitalise on Britain's high house prices, which make it difficult for first-time buyers to get mortgages.
"This extension and increase in the loan facility means that the total warehouse capacity within the group is now £450m and supports our growth plans in the buy-to-let market, where we see continued landlord confidence in the sector, supported by strong tenant demand," said Nigel Terrington, Chief Executive of Paragon.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
What is a trust – and should you use it to avoid inheritance tax?
Trusts are surging in popularity as a way to avoid inheritance tax, according to financial advisers on the frontline of estate planning. We look at what trusts are and if they are right for you.
-
What will be the consequences of Donald Trump’s "One Big Beautiful Bill"?
The US president’s "One Big Beautiful Bill", an extraordinary mix of tax cuts and spending plans, has made it through both houses of the US Congress. What will be the consequences?