Latest news with #ParagonBank
Yahoo
6 days ago
- Business
- Yahoo
Paragon secures £27m in funding for SME lending
The British Business Bank's Growth Guarantee Scheme (GGS) has allocated £27m to Paragon Bank, a specialist lender and savings bank providing a range of products and services in the UK. Succeeding the Recovery Loan Scheme, the GGS provides accredited lenders with a government-backed guarantee while borrowers remain fully liable for the debt. It aims to improve access to finance for UK small and medium enterprises (SMEs) seeking to invest and grow. The additional £27m funding increases Paragon Bank's total lending capacity under the scheme to £55m. Of this, £10m is designated specifically to support UK businesses affected by changes in international trade tariffs. A targeted £7m fund has been set aside for businesses impacted by shifting trade tariffs, particularly in sectors such as manufacturing, which have faced increased costs and supply chain complexities. Paragon has so far provided over £40m in GGS-backed funding to more than 300 SMEs, supporting investment and growth in sectors including construction, transport, and agriculture. The new allocation will allow Paragon to further expand its support, offering both unsecured loans and asset-based finance to businesses that may struggle to access capital. Paragon Bank SME Lending deputy managing director Phil Hughes said: 'The additional funding from the British Business Bank is a welcome boost and a clear vote of confidence in our ability to deliver meaningful support to UK SMEs. 'We've already seen the transformative impact of the Growth Guarantee Scheme, and with this new allocation, we're ready to support even more businesses on their growth journeys.' In a separate development, UK bank Aldermore has confirmed its accreditation as a lender under the invoice finance and term loan variants of the GGS, having previously participated in the Recovery Loan Scheme. For its invoice finance offering, Aldermore provides a maximum facility of £2m per business group, with a fixed value up to the facility review limit, as determined by the bank. Facility limit increases may be considered for extraordinary events, but cannot include inter-company debt, aged debtors, or disputed debt. Aldermore's Term Loan offering under the GGS operates alongside its invoice finance facility, providing loans ranging from £25,000 to £2m per business group, with term lengths available from three months to six years. Aldermore invoice finance business development head Chris Meldrum said: 'As a long-standing partner in government-backed lending schemes, it's a natural step to now offer the invoice finance variant of the Growth Guarantee Scheme. 'This initiative allows us to continue providing vital financial solutions that help businesses invest, scale, and drive economic growth.' "Paragon secures £27m in funding for SME lending" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
HDM Energies and Paragon Bank launch £100m solar finance scheme
HDM Energies has announced a strategic partnership with FTSE 250 lender Paragon Bank, which will unlock up to £100 million in funding to support rooftop solar installations for UK small and medium-sized enterprises (SMEs). The agreement marks what the two companies describe as a first in the UK asset finance sector: a Power Purchase Agreement (PPA) tailored for SMEs. Backed by Paragon Bank, the facility enables businesses to install rooftop solar panels at no upfront cost, while accessing discounted, fixed-rate energy prices over terms of 10 to 25 years. 'This is a major milestone in our journey to 2.5GW of rooftop solar by 2030,' said Dan Rogers, founder of HDM Energies, who described the partnership as adding 'a strong layer of confidence for our customers'. The scheme includes a full site survey, with HDM Energies funding, installing and maintaining the solar system throughout the contract period. Customers pay only for the solar energy they use, at a predictable rate, and can benefit from lower energy costs from day one. Surplus energy not consumed on-site is exported to the National Grid. Rogers said the offering removes the burden of capital expenditure and addresses a market 'underserved by traditional energy providers'. He added that HDM's model was designed to deliver 'real value to businesses nationwide', citing support from installation partners and sister company HDM Solar, which supplies the hardware. Andy Craggs, Head of Green Energy Finance SME Lending at Paragon Bank, said the partnership reflects growing demand for clean energy solutions that offer both environmental and financial returns. 'Finding a way to unlock clean sustainable energy in the SME space is essential for the UK,' he said, adding that HDM's work is already generating 'immediate and tangible cost savings' across a range of sectors including manufacturing, education, and hospitality. The PPA model, both firms argue, signals a shift in asset finance — from transactional lending to long-term, impact-driven partnerships aligned with national net zero goals. "HDM Energies and Paragon Bank launch £100m solar finance scheme" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Telegraph
17-07-2025
- Business
- Telegraph
‘I gave up 100-hour work weeks to be an HMO landlord earning 17pc yields'
For most of her life, Kim Opszala's plan was to climb the corporate ladder. But when she got there, she rapidly discovered the view from the top is not quite as idyllic as she had imagined. So Opszala pivoted her plans. Fed up of working 100-hour weeks and never seeing her family, she decided to scale back her career as a lawyer. This would mean taking a hefty pay cut. To make up the difference, she has built up a sideline property portfolio, picking one of the most lucrative rental sectors. Shared houses – officially known as a house in multiple occupation (HMO), and defined as a property rented out to at least three individual tenants sharing amenities like kitchens and bathrooms – provide landlords with significantly richer pickings than regular privately rented homes. Recent research by Paragon Bank shows British landlords currently make an average rental yield of 7.1pc. In England, they range from a high of 7.9pc in Yorkshire and Humberside to a low of 5.8pc in Greater London. But HMOs can deliver far higher returns – sometimes three or four times as much, according to estate agent Hamptons. It found that the highest gross profits are in the North East and North West, with Stockton-on-Tees, Burnley and Rochdale landlords recording gross yields of 19.6pc, 19.1pc, and 18.6pc respectively. The East Midlands is also a good bet, with South Derbyshire, Ashfield and Mansfield all recording gross yields of 17pc to 18pc. Even in the South, where high buying prices cut into profits, HMO yields are comfortably twice the overall average. 'We wanted to replace my salary, so we picked HMOs' Opszala's first experience of HMOs was living in one as a student in Aberystwyth, Wales. 'It was awful, very tired, the furniture was all old and mismatched, and there were six of us and just one shower and one bath,' she recalls. 'It was great living with friends, but the accommodation was very substandard.' In 2018, Opszala, 40, and her husband Mike, 44, bought an HMO in Milton Keynes, where they were living at the time. The couple, who now live in a village in Staffordshire with their five-year-old, now own eight properties, mostly in Milton Keynes and Northampton. They collectively house more than 50 people, and run KoMo Properties. They are in the process of adding two more shared houses to their portfolio. 'Why did we concentrate on HMOs? It was for cash flow reasons,' says Opszala, who as a lawyer specialises in mergers and acquisitions. 'HMOs have a much better return. When we started, I was working at one of the largest law firms in the world, and Mike was working nights as a chef. We were like ships that passed in the night. It wasn't sustainable. We wanted to replace my salary so that I wouldn't have to work like that.' That first HMO currently earns the couple a yield of almost 17pc. KoMo's income has allowed Opszala to stop working full time. She takes law contracts for three to six months per year, and Mike quit cheffing in 2022 to work on the business full time. Like the couple, many landlords prefer to invest close to home for the sense of safety, plus the possibility of managing their rental property themselves. Although the highest yields are in the North, southerners can also find pockets of opportunity. The highest yields are to be found in King's Lynn, West Norfolk, Ipswich and Somerset, which are all around 16pc according to Hamptons. The average price of an HMO in these areas hovers around £200,000. In London, your best bet is to look in the suburbs. In Havering, an average HMO costs £414,400, and returns gross yields of 12.8pc. Other HMO hotspots in the capital are in Sutton and Barking and Dagenham. The university cities with the best gross yields are led by Derby (15.5pc; average price £182,000), followed by Leicester and Kingston upon Hull. The small print But before you rush to invest, bear in mind that there are downsides beyond HMOs' headline figures. Howard Levy, of mortgage broker SPF Private Clients, warns landlords who want to follow in Opszala's footsteps to pay attention to the small print. Interest rates for HMOs tend to be slightly higher than on standard buy-to-lets. Like-for-like examples are tricky, but for five-year fixes, the cheapest standard landlord mortgage is on offer with Birmingham Midshires at 3.71pc, plus a 3pc fee. For an HMO mortgage, Vida Bank offers one at 4.2pc, with a 7pc fee. Insurance premiums are also likely to be higher. There are also legal hurdles to overcome before you can launch your HMO in the first place. Some of the Opszalas' houses were already designated as HMOs when they bought them. Others were not, and in many locations, including both Milton Keynes and Northampton, this means applying for planning permission. Last month, Opszala found herself addressing a council meeting which was deciding on her application to use a house as a new seven-bedroom HMO, in the face of almost 200 local objections. 'It was al,: 'They are going to house criminals, there will be no parking, there will be rubbish on the streets, the whole area will go down',' she says. 'I was able to explain why HMOs are needed, and how we run them, and it was approved. But it is a risk, quite stressful and time consuming.' When up and running, HMO landlords also need to meet higher safety standards. According to the British Landlords Association, this means fitting half-hour fire doors and, as with all private rentals, gas safety checks must be conducted annually. HMO electrics need to be checked every five years. Other private landlords need to commit only to making sure the electrical system and appliances are safe, with no regular inspection programme. All rental properties must be fitted with smoke and carbon monoxide alarms, but large HMOs also need fire alarms and extinguishers. HMOs also need to be licenced by the local council, and costs can be in excess of £2,000 per year depending on location. Most of the Opszalas' tenants are graduates and students fresh out of halls of residence. This means that a certain degree of hand-holding is required, she says. 'It is generally things like using the washing machine and the dryers, or a lightbulb will go and we will have to educate them on how to change it.' The compensation for the couple is freedom. They have been able to indulge their passion for travelling too, taking regular family campervan trips around Europe while running the company remotely. Swapping a pension for HMOs Neil France got into the HMO business because he is self-employed – the 68-year-old runs international leadership training programmes – and was concerned about what could happen to him should he ever become too unwell to work. He was also deeply disappointed in the performance of the pension he had dutifully been paying into for years. In 2009, he stopped those payments, and instead bought a house on the Wirral which had belonged to his wife's aunt, renting it out to a succession of families in the year that followed. He then bought three more properties there. But by 2013, he reviewed his portfolio and decided that 'normal' rental properties weren't making enough profit – their gross yield is 5pc or 6pc. So he bought three HMO properties close to his home in Chelmsford, Essex, which make 10pc to 12pc. France doesn't find his HMO tenants – who are mainly young professionals – any more or less likely to cause trouble than his private renters, and has found that a system of 'ruthless referencing' helps weed out bad apples. But HMOs do inevitably generate more work, what feels to France like an endless, wearying flow of weekend calls requesting assistance for everything from slow-running Wi-Fi to leaky showers to fights over bathroom cleanliness. Over the past 16 years, he has continued with his day job, resulting in a good amount of equity in his portfolio. In the same period, times have grown tougher for landlords – notably thanks to the successive increases in stamp duty in 2014 and 2016 and the end of tax relief on their mortgage interest payments from 2017. 'We have been made pariahs by successive governments,' says France. But with four grown-up children to consider, he is resisting the temptation to sell up. Instead, he is taking equity out of his houses and gifting it to his children, in the hope that he can lower their eventual inheritance tax bill. 'I'm not sure it is worth the hassle' Another HMO malcontent is Xavier Archibold, who began investing in rental properties when he received an inheritance in 2016. He now has 20 of them – 16 regular properties and four HMOs, each with four or five bedrooms. All are close to his home in Leeds, chosen partly because Archibold, 52, a consultant in the transport logistics industry, does a lot of the management himself. 'And the North is doing very well in terms of price growth,' he says. His advice to others is that, as with all rental properties, choosing the right HMO is essential. They need to have good public transport links and be close to amenities, and the bedrooms need to be spacious and, ideally, en suite. 'The number of people who turn their noses up at a shared bathroom is unbelievable,' he says. Xavier says his HMOs earn good money – each room is charged at between £450 and almost £800 per month, depending on location, size and amenities – bringing in a gross yield of around 10pc to 12pc, compared to 5pc to 6pc for his regular rentals. Despite this, he is considering selling off his HMOs after growing tired of refereeing arguments about washing up, doing constant maintenance and dealing with personal problems from job losses to mental health crises. 'It is constant little things,' he says. 'I'm not sure if it is worth the hassle. You have got five tenants for the price of one – and one of them is bound to be difficult. Even if they are fine, if one person moves out it takes time to replace them, and that is all your profit gone for that month.'
Yahoo
08-07-2025
- Business
- Yahoo
Paragon Bank strengthens SME lending with appointments
Paragon Bank has announced two senior appointments to its SME Lending division as part of a wider strategy to accelerate green energy financing and expand support for small and medium-sized enterprises (SMEs) across the UK. Andy Craggs, a seasoned figure in the asset finance sector with more than 30 years' experience, will spearhead Paragon's green energy lending offering. Craggs joins the bank from Premier, a brokerage within the Paragon Banking Group that has transacted over £1 billion in SME finance. He previously served as Managing Director at ECS Group. Reporting to John Phillipou, Managing Director of SME Lending and Chair of the Finance & Leasing Association, Craggs will play a 'pivotal role' in driving growth in the green energy market. According to Paragon, his 'proven track record of supporting SMEs' and his network of energy generators and technology installers will be instrumental in helping businesses transition to net zero. Emma Gorman also joins the SME Lending team, bringing more than 13 years of experience in asset finance and SME brokering. Her previous roles include positions at Hampshire Trust Bank, Macquarie Bank, and Aldermore Bank, as well as a stint with an asset finance brokerage. Gorman's appointment will enhance Paragon's broker engagement strategy. 'Her deep understanding of the broker market and extensive asset finance experience make her a valuable addition to the team,' the bank stated. The appointments come amid rising demand for tailored SME finance solutions. Last year, Paragon increased lending in its SME division by 7.3%, exceeding £480 million. Commenting on the new hires, Stewart Good, Sales Director of SME Lending at Paragon Bank, said: 'We're thrilled to welcome Emma and Andy… Their combined expertise and ambition will be instrumental in driving our growth and delivering tailored financial solutions to our clients.' "Paragon Bank strengthens SME lending with appointments" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Scottish Sun
07-07-2025
- Business
- Scottish Sun
Warning for 31million bank customers losing more than £350 a year for leaving cash in zombie accounts
We've explained how to find the top rates CASH BLOW Warning for 31million bank customers losing more than £350 a year for leaving cash in zombie accounts Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MILLIONS of Brits are losing out on hundreds of pounds each by keeping their savings in low-interest "zombie" accounts. More than 31million bank customers have £186billion in savings accounts earning just 1.5% interest, according to Paragon Bank's app Spring. Sign up for Scottish Sun newsletter Sign up 1 To help you get the best returns, we've listed the top savings rates below These accounts generate £2.3billion a year in interest, but savers could earn over three times more by switching to accounts offering up to 5% interest, The Sun can reveal. The average bank customer has around £10,000 in savings, according to Raisin. If that £10,000 is kept in an easy access account earning 1.5% interest, it would generate just £150 in interest each year. But switching to Chase's 5% easy access account would boost that to £500, earning you an extra £350. Experts specifically warn that using savings linked to current accounts often means low rates, restrictions, and losing value to inflation. Derek Sprawling, managing director of Spring, said: "Too many savers are leaving their money with their current account provider's linked savings accounts. "Simply sticking with a savings account offered by their current account provider often means an array of restrictions, such as tiered rates or withdrawal limits, on top of poor rates. "There are other options for savers, it is possible to get a rewarding rate of return without sacrificing access to their money or wading through a host of restrictive terms and conditions." If your savings account pays less than the current inflation rate of 3.4%, it's time to look for a better deal. Plus, the Bank of England is expected to cut its base rate soon, which could make savings rates even lower. The base rate affects how much banks pay savers - when it drops, interest on savings usually goes down too. Financial markets expect the Bank to reduce rates at its next meeting in August, and again to 3.75% before the end of the year. How this affects your savings depends on the type of account you have. Fixed-rate accounts won't change, but easy-access accounts can see their rates drop at any time. What types of savings accounts are available? THERE are four types of savings accounts: fixed, notice, easy access, and regular savers. Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free. But we've rounded up the main types of conventional savings accounts below. FIXED-RATE A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term. This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account. Some providers give the option to withdraw, but it comes with a hefty fee. NOTICE Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash. These accounts don't lock your cash away for as long as a typical fixed bond account. You'll need to give advance notice to your bank - up to 180 days in some cases - before you can make a withdrawal or you'll lose the interest. EASY-ACCESS An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals. These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee. REGULAR SAVER These accounts pay some of the best returns as long as you pay in a set amount each month. You'll usually need to hold a current account with providers to access the best rates. However, if you have a lot of money to save, these accounts often come with monthly deposit limits. To help you get the best returns, we've listed the top savings rates for each account type below. What's on offer? If you're looking for a savings account without withdrawal limitations, then you'll want to opt for an easy-access saver. These do what they say on the tin and usually allow for unlimited cash withdrawals. The best easy access savings account available is from Atom Bank, which pays 5% - and you only need to pay a minimum of £1 to set it up. This means that if you were to save £1,000 in this account, you would earn £50 a year in interest. However, this rate is only for new customers and includes a 2.25% bonus for the first 12 months. Meanwhile, Snoop's easy access saver offers customers 4.6% back on savings worth £1 or more. If you're okay with being less flexible about withdrawals, a top notice account could be a great option. These accounts offer better rates than easy-access accounts but still let you access your money more flexibly than a a fixed-bond. Plum's 95-day notice account offers savers 4.84% back with a minimum £1 deposit, for example. This means that if you were to save £1,000 in this account, you would earn £48.40 a year in interest. Oxbury Bank's 120-day notice account offers 4.6%, requiring a minimum deposit of £1,000. If you want to lock your money away and keep the same savings rate for a set time, a fixed bond is a good choice. The best fixed rate currently offered is GB Bank's one-year fixed bond, which pays 4.58%, requiring a minimum deposit of £1,000. Meanwhile, Marcus by Goldman Sachs's one-year fixed bond offers 4.55% back on a deposit of £1 or more. This means that if you were to save £1,000 in this account, you would earn £45.50 a year in interest. If you want to build a habit of saving a set amount of money each month, a regular savings account could pay you dividends. Principality Building Society's Six Month Regular Saver offers 7.5% interest on savings. It allows customers to save between £1 and £200 a month. Save in the maximum, and you'll earn 25.81 in interest. While regular savings accounts look attractive due to the high interest rates on offer, they are not right for all savers. You can't use a regular savings account to earn interest on a lump sum. The amount you can save into the account each month will be limited, typically to somewhere between £200 and £500. Therefore, if you have more to save, it would be wise to consider one of the other accounts mentioned above.
