The Paragon Group of Companies PLC has announced the renewal of its mortgage warehouse facility with Macquarie Bank Limited (London Branch), with an increase in the facility to £250 million from £200 million.
The facility, rated by Fitch Ratings, will be available until 13 December 2016 (and for drawing until 13 December 2014) to Paragon Fourth Funding Limited, a 100% owned subsidiary of Paragon and interest will be charged on the amount drawn at an unchanged rate of three month LIBOR plus 2.875%.
Paragon uses warehouse facilities to originate and aggregate mortgage loans, where they are held for a limited period prior to long-term funding in the mortgage backed securitisation markets. Paragon recently completed its latest securitisation, PM17, amounting to £200 million.
“We are delighted to have strengthened our relationship with Macquarie, with whom we have been working closely since our return to new lending,” said Paragon Group chief executive, Nigel Terrington.
“This extension and increase in the loan facility means that the total warehouse capacity within the Group is now £450 million and supports our growth plans in the buy-to-let market, where we see continued landlord confidence in the sector, supported by strong tenant demand.”
