Paragon Bank has confirmed that TBMC, the Cardiff-based mortgage broker business, will be closing and will no longer accept new applications from today (17 July).
All applications currently in the pipeline will be processed through the normal channels.
The closure of TBMC follows a comprehensive review by its parent company Paragon and is in line with Paragon’s strategy of prioritising investment in its core operations.
Paragon says that TMBC’s closure will impact a “small” number of employees but will have no impact on the performance of the wider group as it does not make a material contribution to Paragon’s profits, and will have no impact on the level of buy-to-let business Paragon receives.
Since TBMC’s acquisition in 2007, Paragon’s mortgage intermediary distribution model has undergone significant evolution and expansion. Consequently, TBMC is no longer considered to be strategically core to the company’s distribution network.
Richard Rowntree (pictured), 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.
“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.”
