"By bringing more of our business into the banking framework, we can use our capital more efficiently and simplify our operating structure enabling us to offer better products"
The Paragon Group, the parent company of Paragon Mortgages and Mortgage Trust, has announced a strategic reorganisation and will now be known as Paragon Banking Group.
All of the Group's lending and operating activities, together with the majority of its loan portfolio, now sits within Paragon Bank.
The move follows PRA and FCA approval and reflect the Group’s strategy to source the majority of its funding from the retail deposit market going forward.
The Group says the reorganisation reflects the "changing focus towards becoming a fully integrated banking business" and will include realigning Paragon’s mortgage products under the refreshed brand.
John Heron, who will continue to lead the Group’s mortgage business as Managing Director – Mortgages and as an Executive Director at Paragon, said: “This is an important milestone and a positive development for our customers and intermediaries. By bringing more of our business into the banking framework, we can use our capital more efficiently and simplify our operating structure enabling us to offer better products, more competitive pricing and better service going forward.”