Paragon announces closure of TBMC

TBMC, the Cardiff-based mortgage broker business, is closing and will no longer accept new applications from today.

TBMC's parent company, Paragon Banking Group, confirmed that all applications currently in the pipeline will be managed through the usual process and pledged to "ensure a smooth transition during this period".

Paragon says the closure of TBMC follows a comprehensive review and is in line with its "strategy of prioritising investment in its core operations".

The Group said the closure of TBMC 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.

In a statement, Paragon commented: "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, managing director of mortgages at Paragon Bank, 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."