Paragon unveils SIPP proposals

Paragon Mortgages has revealed its plans for self invested personal pensions in a bid to head off industry rumours that it might cut its panel of eligible introducers.

The buy-to-let specialist lender says as an expert in the field it will have strict controls in place so only those qualified and able to provide expert advice on SIPPs will be able to introduce to Paragon.

But this does not mean it will be cutting the number of introducers it deals with, as one broker complained they had heard Paragon was planning to do.

John Heron, director of mortgages at Paragon, says: “We’re bringing a range of products and services to the market but we have some concerns about the level of knowledge out there at the moment.”

Heron says this is not necessarily the fault of the industry and that the quality of information published by the government about SIPPs has been poor.

He adds: “We have concerns about the level of knowledge of both customers and brokers. We don’t want to make SIPP mortgage advances to people who are not fully informed.

“In no way are we seeking to cut people out, but we’re drawing a line. We will not allow any of our brokers access to products unless they’ve had access to all the information we have published and can show to our satisfaction that they have seen all that information.”

Regular information on SIPPs will be available on Paragon’s website and a service is now available whereby brokers can sign up for extra updates. It is also putting the finishing touches to a publication on everything you need to know about SIPP mortgages.