Paragon Bank homeowner loans

Paragon Bank offers secured loans of £20,000 to £500,000 to UK homeowners, repayable over 5 to 30 years. It does not lend directly to its customers, so you'll need to apply through one of its brokers.

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The UK's largest range of secured loans

  • Loans from £1,000 to £2,500,000
  • See your quote before you apply
  • Quote won’t affect your credit score

Important: Paragon Bank is no longer accepting any new applications. This page has been preserved for historical purposes, and you can compare a range of secured loans here.

What is Paragon Bank?

Paragon Bank has helped more than 1.5 million customers with their finances since it was founded in 1985. As well as offering homeowner loans, it also arranges mortgages, unsecured loans, motor finance and savings accounts. The bank is part of the Paragon Banking Group, which is one of the FTSE 250.

Is Paragon Bank safe?

Paragon Bank PLC is authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FCA). It is also authorised under the Financial Services Compensation Scheme (FSCS).

What types of loans does Paragon Bank offer?

Paragon Bank offers a range of loan products, including car loans, business loans and asset finance, as well as first-charge and second-charge mortgages, also known as secured homeowner loans.

What is a second-charge mortgage?

In the same way as your original (first-charge) mortgage, a second-charge mortgage is a type of loan that’s secured against your home. It’s wise to think carefully before taking out a second-charge mortgage, as your property will be at risk if you don’t keep up repayments.

Full guide to second-charge mortgages

Key features of Paragon Bank homeowner loans

  • Borrow £20,000 to £500,000. The amount you can borrow will be based on the value of your home, the outstanding mortgage and what you can afford, up to a maximum LTV of 75%.
  • Repay over 5 to 30 years. Your repayment term will depend on your individual needs and circumstances.
  • Variable or fixed rates. You can choose to fix your interest rate for 2 to 5 years to help you budget for the repayments.
  • Security. Your home will be used as security on your loan. Missing repayments will put your property at risk, so always ensure that you can afford the loan you are asking for before you apply.
  • Product fee. You will be charged a one-off fee when you take out your loan.
  • Overpayments. You can make additional payments to your loan, but they must be of at least £500 each time.
  • Early settlement. You can pay off your loan early in full at any time by contacting Paragon Bank for a settlement figure. There may be a fee for doing this.

Pros and cons of Paragon Bank secured loans


  • Competitive rates
  • Flexible loan terms
  • Variable or fixed interest rates


  • You’ll need to use your home as security against the loan
  • Initial loan fee

What can I use a Paragon Bank loan for?

You can use a Paragon Bank secured loan for any legitimate purpose, such as paying for home renovations, buying a car, going on holiday, paying for a wedding, or any other large expense or purchase.

Am I eligible for a Paragon Bank homeowner loan?

You should only apply for a Paragon Bank homeowner loan if you are certain you can meet the repayment terms. You must also meet the following criteria:

  • Be over 21 years old
  • Be employed or self-employed
  • Be resident in England, Wales or mainland Scotland
  • Be a homeowner. The property you are securing your loan against must be your main home
  • Already have a first-charge mortgage on your home

Paragon Bank states that these loans should not be used for business purposes, cosmetic surgery, settlement of outstanding tax, installation of solar panels, financial speculation or funding towards marital settlement.

How can I apply?

  • Paragon Bank doesn’t sell its second-charge mortgages directly to customers. They are only available through a number of mortgage brokers, or “intermediaries”, who specialise in this market. You can contact Paragon Bank to find a suitable company to apply through.
  • Once you have chosen an intermediary, they will ask about your circumstances and finances and about your requirements. They will then recommend a loan that is most suitable for your needs and circumstances. They will also be responsible for arranging your loan.
  • Your intermediary should explain the terms and conditions of the loan, as well as what the various documents mean. You should always ask for an explanation if you don’t understand any part of your second-charge mortgage agreement, including the terms and conditions.
  • If, after talking to your intermediary, you are still in any doubt you should seek independent legal and/or financial advice. Please be aware that your intermediary may charge you a fee for their service. Always check this before you go ahead.

Paragon Bank loans customer reviews

On customer review platform Trustpilot, Paragon Bank has 2.3 out of 5 stars and a rating of “Average”, based on more than 236 reviews. On similar platform Feefo, Paragon Bank has 4.3 out of 5 stars, based on more than 3,856 reviews (updated 11 February 2021).


Before taking out a homeowner loan, you should consider all of your options carefully. Other ways of borrowing large sums include:

  • Remortgaging. Remortgaging is when you switch to a new mortgage, with the same or a new lender. In the process you can renegotiate the loan – potentially releasing equity.
  • Unsecured personal loans. If you have excellent credit and would be able to afford it, most lenders offering unsecured loans will stretch to £25,000, or in some cases £30,000. Some big high-street banks will go up to £50,000 for existing customers, but again, you’ll need to get through the affordability and credit checks.
  • Car finance. If you need money to buy a new vehicle, there is a wide range of car finance options you could consider.

Our verdict

Paragon Bank offers competitive secured loans with flexible loan terms and low rates, and could be a good option for homeowners looking to borrow against the equity they have in their home. However, you’re likely to need good credit history to be eligible, which could rule out some borrowers.

Frequently asked questions

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