Buy-to-let specialist Paragon raises £273m in mortgage sale

Tim Wallace
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SPECIALIST lender Paragon completed a securitisation transaction yesterday, raising funds in the market to finance more lending, the group announced.

Special purpose vehicle Paragon Mortgages 18 was made up of three tranches of assets, and came in at a total of £273m.

The vast majority of the deal was made up of triple-A rated notes at a margin of 115 basis points over three month Libor.

But the vehicle also included some lower-rated buy-to-let assets. It included £15.7m of double-A rated notes, at 170 basis points above Libor, and £13.7m of A-rated notes.

“We are seeing positive improvements generally in the buy-to-let market following renewed confidence from landlords and we will continue to grow this area of the business in the next 12 months,” said Paragon’s chief executive Nigel Terrington.