Paragon seeks banking licence

Paragon, the buy-to-let mortgage provider, is applying for a banking licence in order to kickstart its consumer lending business.

Paragon is one of the first to apply through the Prudential Regulation Authority, with its new, relaxed attitude on new banks.

Paragon's buy-to-let business is booming, with the mortgage pipeline at the end of March up to £240m from £100m a year ago. Profits were £48.2m in the six months to 31 March, a rise of 10 per cent on the same period last year.