All applications in the pipeline will be processed through the “normal channels” in order to ensure a “seamless transition”.
TBMC was founded in 1989 and specialised in buy-to-let and commercial mortgages. The firm was bought by Paragon in 2007.
In a statement, Paragon said the closure of TBMC came after a “comprehensive review” by the parent company and was “in line with Paragon’s strategy of prioritising investment in its core operations”.
It continued that the closure of the firm would impact 17 roles, but have “no impact on the performance of the wider group” as the broker did not make a “material contribution” to the parent company’s profits.
Paragon continued that the closure would also not have an impact on the level of buy-to-let business the lender receives.
The lender said since the broker was acquired in 2007, its mortgage intermediary distribution model had undergone “significant evolution and expansion”, and so TBMC was “no longer considered to be strategically core to the company’s distribution network”.
Richard Rowntree, Paragon Bank’s managing director of mortgages, said: “We appreciate this is difficult news for our colleagues at TBMC and I thank Jane Simpson and her team for the service they have given to the company over the years.”
He added: “Paragon’s mortgage distribution model has evolved and broadened significantly since TBMC was acquired in 2007 and, as such, TBMC is today considered a non-core operation.
“As one of the leading buy-to-let lenders in the UK, our strategy remains focussed on growing lending in specialist segments of the market, particularly in areas where larger banks fail to adequately serve customers.”
