The home repossession page warns against using Paragon Mortgages. I am thinking of getting a mortgage with them - to rent out to students. These people seem to be the only people who will lend me the money - given I want to rent to students. Does anyone have any information about Paragon Mortages that will help me make up my mind.

Also I am worried that, because they are not a well known bank, they may go bankrupt and leave me in the position that I would have to repay all the money straight away ! Is this a realistic fear and can I insure against it ?

-- Tracy Smith (t_smith50@hotmail.com), May 12, 1999

Answers

Im not really able to answer your question as the only material I can add to what is already on the web-site would likely expose me to libel action.

My personal view of the company  and this is only my personal view, not a recommendation on whether they are currently a good company to deal with - is that in the past they have engaged in practices which would concern most ordinary people. Those practices have concerned the financial authorities and MPs and have generated bad publicity for Paragon under its old name. Paragon is the result of a name change shortly after widespread and negative publicity.

There are also currently customer issues involving Paragon which have yet to be resolved. Because of that I am not able to discuss them in any detail.

Nor am I qualified to comment on Paragons buy-to-let mortgages as this is not an area we have looked at  we have concentrated on credit-impaired mortgages. Paragon is far from the only lender offering buy-to-let mortgages though.

As for its trading ability, Paragons share price has been rather low but was being tipped as a buy by the Daily Telegraph (I think) in early May 99 as one whose business was under-rated.

Lee

-- Lee (repossession@bigfoot.com), May 14, 1999.