Paragon is to close loophole by scrutinising Sipps trustees.(Paragon Mortgages )(self invested personal pension)(Brief Article)

Financial Adviser, November, 2005

Paragon Mortgages will scrutinise unfamiliar trustees of Sipps who approach them for a mortgage.

Tony Armitage, director of group business for the Paragon Group, said that it would also only deal with Bank of England approved trustees.

Last month, Mike Morrison, the pensions strategy manager for Winterthur Life, warned that a loophole in the law may allow Sipp policyholders to borrow more than the 50 per cent of the fund's value allowed.

Paragon's Sipp mortgage will probably allow a loan-to-value of 80 per cent on buy-to-let properties.

Mr Armitage said that it was the responsibility of Sipp trustees to prevent policyholders from borrowing more than the 50 per cent allowed.

He added that Paragon would only deal with Bank of...

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