Paragon Bank has joined the Bridging & Development Lenders Association as it prepares to launch a new specialist bridging division in 2027, adding an established banking name to the sector’s forthcoming competition.
The bank’s associate membership, announced on 9 November, marks another step in preparations already under way. Paragon intends to become a full member once the new business is operational.
For property investors and developers, the expansion could eventually mean another source of short-term capital. The immediate development is the bank’s growing presence in the sector: the announcement does not introduce a priced product range that borrowers can compare today.
An experienced team takes shape
Paragon’s plans were first reported in August, when it appointed Colin Sanders and Sundeep Patel to develop the proposition. Sanders previously led Omni Capital and founded Tuscan Capital. Patel’s specialist lending experience includes senior roles at Together, Precise Mortgages and United Trust Bank.
The team has since expanded. Bridging & Commercial reports that Swaraj Dada has been appointed head of bridging credit and Kate Cooper senior bridging underwriter, adding credit and underwriting expertise ahead of the wider launch.
The original timetable included a pilot with selected intermediaries before a full launch in 2027. This week’s announcement does not establish whether that pilot is accepting cases or when access will broaden.
In the membership announcement, Patel emphasised the backing of the wider banking group and Paragon’s intention to build a lasting presence. The bank is presenting the division as a continuing part of its specialist lending business, with customer service central to its plans.
A new division within an established property lender
Paragon already has relationships with property investors and developers through its existing lending operations. Those connections could give the new team a useful starting point when speaking to brokers and understanding the transactions they need to finance.
There is also an important distinction in the announcement. Paragon already advertises short-term bridging through its Development Finance team. The 2027 plans concern a new specialist proposition, rather than the bank’s first involvement in any form of bridging.
Its existing development-related offering does not establish the new division’s loan sizes, pricing or property criteria. Those details will determine where it fits alongside other lenders and which enquiries it can realistically accommodate.
Where additional competition could make a difference
Bridging borrowers often need finance because a transaction does not fit the timing or condition requirements of a conventional mortgage. A purchase may need to complete quickly, refurbishment may be required before refinancing, or completed properties may need more time to sell.
These are common uses of bridging across the market, rather than confirmed categories for Paragon’s new range. The commercial significance of its launch will depend on which of those needs the bank chooses to serve.
For example, an investor buying a property that requires works needs more than an acceptable headline rate. The facility must provide enough usable cash, allow the proposed refurbishment and leave a credible route into longer-term borrowing or a sale.
A further lender could increase the options for that transaction. Whether it offers better value will depend on the interest, fees, valuation approach, underwriting and time available to complete. An established banking name alone cannot settle that comparison.
The next milestone will be the lending terms
For brokers, the useful work now is to establish how the new team plans to engage with intermediaries. Expected loan sizes, property types, geographical coverage, borrower experience requirements and development-exit appetite will all help determine which future cases may fit.
Borrowers with an existing deadline still need a facility that is available when required. A purchase due to complete this year, or a development loan approaching maturity, cannot be planned around an unconfirmed product launch.
Paragon’s membership therefore gives the market a further sign of its preparations. The next substantive news will be the terms on which it intends to lend and the date brokers can begin submitting applications more widely.
Have a purchase or refurbishment to fund before the new launch?
Paragon’s planned division is one to watch for 2027. For a transaction already taking shape, Willow can review the finance available now against your completion date, property security, works and proposed sale or refinance.
Explore Bridging FinanceFrequently asked questions
When is Paragon’s new bridging division expected to launch?
The full launch is planned for 2027. The 9 November membership announcement does not give a specific opening date or confirm general access for applications.
What has Paragon announced about BDLA membership?
Paragon has joined as an associate member. It plans to move to full membership once the new bridging business is operational.
Who is leading the new bridging business?
Colin Sanders is managing director and Sundeep Patel is commercial director. The team also includes Swaraj Dada as head of bridging credit and Kate Cooper as senior bridging underwriter.
Have rates, loan limits and eligible property types been confirmed?
The membership announcement does not set out a product range or detailed eligibility criteria. The new division’s terms need to be confirmed separately from Paragon’s existing development-finance services.
What should borrowers do if they need bridging finance now?
Assess facilities currently available against the amount needed, security, completion deadline and repayment plan. A proposed future launch is not a funding commitment for an existing purchase or refinancing deadline.
About the author
Wesley Ranger is a director of Willow Private Finance. His work covers residential mortgages and specialist property finance, including complex income, higher-value borrowing and remortgages.