Secured Loans From Paragon Bank Review
Discover whether Paragon loan rates are a fit for you. Large panel of secured finance products & high acceptance rates!
- Special “broker-only lenders” not featured on the comparison sites with great terms
- Intelligent lending technology & no upfront fees
- Great for clearing other loans/credit cards/existing car credit
- See how little you could pay every month
- High loan-to-value (LTV) with some lenders
- Homeowners could borrow from £10k – £600k
- Keep your existing mortgage with no worries
- Whole Of Market Homeowner Loans. Best Rates In The UK Guaranteed – Pre-approval Without Credit Checks
- Sympathetic To Previous Credit Issues: 1st UK Have Lenders That Accept A Broad Range Types Of Credit.Prime, Light, & Heavy Adverse All Considered.
Pre-Decision In Principle Application Form:
Paragon For Poor and Prime Credit Secured Loans
Paragon works exclusively through intermediaries and offer a range of financial products to a diverse range of people. The rates are competitive, terms flexible and jargon kept to a minimum.
The 2nd charge loans from Paragon are ideal for people looking to tap into their existing home equity without shifting mortgages or doing anything that would affect the first charge mortgage on the property.
With this type of secured home loan, you can easily protect favourable interest rates on existing mortgages, avoid early repayment charges if you were to remortgage, but moreover, you can find that due to LTV (loan to value) restrictions with your current mortgage lender, you could be ineligible for a cash advance anyway.
When things go awry, or your credit files begin to look somewhat less than appealing to lenders, Paragon may be able to assist. They are a specialist lender; however, they do have somewhat strict acceptance criteria you have to meet. For that reason, it’s well worth taking the time to speak to an adverse credit secured loan specialist before you apply as you could do more harm to your credit files by approaching any lender.
Working with a specialist broker, they’ll be able to give you the full scoop on affordability criteria, eligibility for specific products and work with you through the application process.
A key point of interest with Paragon…
The 2nd charge loans are not for any purpose. There are some restrictions to what you can do with the funds released. A few things Paragon won’t accept as a reason (or reasons) for releasing funds are:
- Paying any outstanding taxes
- Paying or contributing to the cost of cosmetic surgery
- Paying to have solar panels installed
- Or using part or all of the funds to pay a marital settlement
Paragon Loans Lending Criteria
Paragon leans more toward the near-prime borrowers rather than offering subprime second charge loans. Some credit issues will automatically rule you out of being approved for 1st UK poor credit secured loans through Paragon.
Those are:
- Being disqualified as a director either now or at any point in the past
- Having a CCJ recorded on your credit files within the past 12 months
- Having an ‘active’ bankruptcy or IVA within the past six years
Other than those, Paragon will consider your application on merit.
What To Expect From Paragon
- Secured loan rates ranging from 3.65% to 7.3% with an APRC of 5.9%
- The borrowing minimum on a secured loan is £15,000 going up to a maximum of £500,000
- The minimum home valuation acceptable is £75,000 and a maximum LTV of 85%
- Rates can be fixed or flexible. No tracker rates.
- Repayment terms can be five years to thirty years or anywhere in between
- The maximum age at the time of application is 60 years old, and loans can be approved with terms extending five years into your retirement.
As a representative example of a Paragon Second Charge Mortgage…
A loan of £48,000 (inclusive of broker fees at £2,505 and a product fee of £495, repaid over 240 months at a 5% variable rate, the cost of credit would be £28,027.20. 240 monthly repayments of £316.78, brings the total repayable to £76,027.20. Cost of credit: £28,027.20 – APRC 5.9%.
~ Source: Paragon Bank
What’s different with Paragon…
- Zero transfer fees
- Child benefit is accepted in whole for up to two children up to the age of 13-years old
- All regular overtime, commission, monthly or quarterly bonuses can be included as part of your income assessment making it easier to meet the affordability criteria
- Joint applicants are welcomed provided one person is over 23-years old and under 60-years-old earning a minimum of £15,000.
Overall Closing Thoughts On Paragon Bank Second Charge Loans
Paragon is an excellent lender catering to some diverse needs, but they do have some criteria leaning on the heavy side making it difficult to get approved under certain circumstances.
For instance, applicants must be and have been a permanent UK resident for the past two years, have a current first charge mortgage in place for at least six months, and have been liable for paying tax for the past two years. In other words, if you’ve lost your job and spent any time unemployed in the past two years, you won’t be eligible.
To find out if you would be eligible for a poor credit second charge loan from Paragon, talk to us today. Our advisors will assess your circumstances, review the lending criteria of Paragon and compare their offering to other specialist lenders on our panel.
We’ll then get back to you with the most likely lender willing to approve your second charge loan with the most favourable rates and flexible terms and work with you through the whole process.
