TBMC, a Cardiff-based mortgage brokerage, is closing and will no longer accept new applications from today.
To ensure a seamless transition, all applications currently in the pipeline will be processed through the normal channels.
The closure follows a comprehensive review by TBMC’s parent company Paragon Banking Group and is in line with Paragon’s strategy of prioritising investment in its core operations.
TBMC’s closure will impact a small number of employees but will have no impact on the performance of the wider group as it does not make a material contribution to Paragon’s profits, the group said.
The closure will also have no impact on the level of buy-to-let business Paragon receives.
Since TBMC’s acquisition in 2007, Paragon’s mortgage intermediary distribution model has undergone significant evolution and expansion.
Consequently, TBMC is no longer considered to be strategically core to the company’s distribution network.
Paragon Bank managing director of mortgages, Richard Rowntree, said: “We appreciate this is difficult news for our colleagues at TBMC and I thank Jane Simpson and her team for the service they have given to the company over the years.
“Paragon’s mortgage distribution model has evolved and broadened significantly since TBMC was acquired in 2007 and, as such, TBMC is today considered a non-core operation."
Rowntree added that Paragon's strategy remains focused on growing lending in specialist segments of the market, particularly in areas where larger banks "fail to adequately serve customers".
Paragon announced its half-year results last month, with new mortgage lending standing at £1.02bn for the six months to 31 March 2023 and its buy-to-let loan book increasing to £12.6bn.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
