Paragon adds online product switching service

It also includes a further advance facility where customers or brokers can apply directly to the lender for additional lending when applying.

A Paragon spokeswoman confirmed that all portfolio and non-portfolio customers who have taken a mortgage with the lender since 2010 can access online switch, with limited companies due to be added shortly.

“All portfolio, non-portfolio and limited companies can access further advance online,” she added.

The lender said it was the first time its customers and intermediary partners would be able to choose a new product at the end of their fixed term agreement and switch online.

Last April Paragon revealed it would pay brokers a retention procuration fee of 0.25% in recognition of the work they did for existing buy-to-let customers.

Customer retention battle

Speaking to Mortgage Solutions earlier today, Sesame and PMS managing director Mark Graves said the product transfer process was likely to be a key broker battleground over the coming year in a largely flat market.

Graves suggested brokers could double their share of the product transfer market to more than 40%.

Although dynamics are slightly different within the buy-to-let market, with a predicted decline in the market over the coming years, lenders will be particularly keen to keep hold of their existing customers.

Paragon has been one of those to benefit from the portfolio lending changes implemented last year, with it witnessing a significant increase in business during the last three months of the year.

Managing director – mortgages John Heron said: “Our aim is to ensure dealing with Paragon is always as simple and easy as possible.

“These developments are a crucial step towards futureproofing our service to customers and intermediary partners – and are just a couple of examples of the many investments we’re making in our buy-to-let mortgage process.”