Paragon mortgages are not publicising all deals to clients

Property Investment

I am a client of Paragon Mortgages, and have been for 12 years. I had a fixed rate mortgage product with them of 4.45% on one of my properties, which was coming to an end on the 31st October 23. For the last six months I have frequently been reviewing my options for what I would do at the end of this term, in the knowledge that I could change products within this timescale. During this time Paragons Standard Variable Rate was 9.6%, which would mean that my mortgage costs would double if I reverted to their SVR.

Since April 23 I have spoken to Paragons Customer Services and Remortgaging Teams on several occasions to review my options, on most occasions I was told to refer to their "Online Product Switching Tool" for clients, where `"I would be able to see all of their deals which were open to me", and where I could also "quickly and simply choose a new product and switch to it without even speaking with them". In addition, I also spoke to their teams about my requirements and also downloaded their "Product Switch Guides".

Ideally I wanted a product where I could make regular overpayments to reduce the loan balance without penalty, and preferably without any fees - I was told that they didnt have any products that met these criteria.

Evey single one of the deals on their Online Product Switching Tool and Product Switch Guides had the following terms;

• A product fee of between £499 and £14,500 for my amount of borrowing requirement.
• An early repayment charge of between 1% and 5% of the outstanding balance.

On the 1st November, once my fixed rate term had ended, I made a capital repayment on the mortgage, with a view to reducing my future interest payments and the knowledge that I would now revert to their SVR. On the 3rd November I called into Paragon Customer Services, to make sure that they had received my capital repayment, but also to see if their SVR had changed at all and to again review my options for my borrowing.

During my conversation with them I found out that;

• I was eligible for a 12 month, discounted rate of 8.6% with no product fee and no early repayment charges
• This rate DID NOT appear on their "Product Switching Tool"
• This rate DID NOT appear in their "Product Switching Guides"
• It could be done straight away over the phone, but had to start on the 1st of a Month
• I would have to pay their SVR of 9.6% for the rest of November, and then revert to this new rate on 1st December

I could very easily have chosen an alternative product and switched to it, incurring significant initial and future charges, when the most appopriate product for me was hidden from view to me until it was revealed during a routine phone conversation.

I have made a formal complain to Paragon Bank and am contemplating what other actions I should also take - Buyer Beware!!