The move means that all the group’s lending and operating activities, together with the majority of its loan portfolio, now sit within Paragon Bank in the group structure.
The team will change its name to Paragon Banking Group PLC which it says reflects the “changing focus towards the group becoming a fully integrated banking business” and will make it easier for customers and intermediaries to recognise its full product range.
John Heron (pictured), 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.”
Earlier this year, the lender announced Mortgage Trust will no longer provide mortgages for landlords with four or more properties.