Paragon to make 93 redundant

The Paragon Group is set to make 93 members of staff redundant as it looks to streamline its mortgage business.

Paragon Mortgages and Mortgage Trust will be merged into a multi-national multi-brand company with a single sales team headed by Andrew Lees.

Mortgage Trust’s head of sales Austin Jelfs will be leaving to pursue other interests.

Paragon, which currently employs 650 staff, expects the restructure to result in 93 positions being made redundant across the group, 38 of which are specifically in the mortgage business, and affected staff have entered a formal 30-day consultation period.

John Heron, director of mortgages, says the changes reflect the current market and will help the Group to position itself to better take advantage of business opportunities.

He says: “Our borrowers and business partners remain bullish about the future of buy-to-let and the private rented sector more generally.

“Our staff have been fantastic in growing this business over the years and more recently in dealing with the challenges created by the credit crunch. It is with great regret that we will have to let some of them go.

‘In particular, I’d like to thank Jelfs who has been key to the success of our Mortgage Trust brand.’

Paragon has £11bn of assets and recently completed a successful rights issue values at £287m.

This allowed it to pay off its £280m corporate facility meaning it has no debt maturing before 2017.