Paragon achieves record pricing on securitisation

Paragon Group has achieved record pricing on its latest securitisation, which closed last Thursday on 1.5bn.

It says that this demonstrates international investors in the UK buy-to-let market.

Paragon Mortgages is backed by prime buy-to-let mortgages and brings the Groups total issuance to 18.5bn.

John Heron, managing director of Paragon Mortgages, says: The rousing success of our latest securitisation, in which we achieved our lowest ever average coupon, provides further evidence that investors in the UK, Europe and the US understand the superior credit quality of buy-to-let.

At a time when investors are thinking twice about taking exposure on the US sub-prime market, their appetite for UK buy-to-let assets has never been stronger.

This transaction was heavily oversubscribed by international investors who understand the strength of buy-to-let and are confident in Paragon as an originator, and we were able to achieve record pricing in line with prime owner-occupied mortgage securitisations.