Securitisation release

Paragon Group Of Companies PLC
22 March 2002


Press Information      For immediate release: 22nd March 2002

          PARAGON LAUNCHES ITS LARGEST EVER SECURITISATION TRANSACTION

Paragon Mortgages Limited ('Paragon Mortgages'), a subsidiary of The Paragon
Group of Companies PLC ('Paragon'), today announces the launch of a £500 million
securitisation transaction, as part of its buy-to-let mortgage securitisation
programme. The deal is Paragon's largest securitisation to date.

The present transaction reflects the buoyant state of the buy-to-let market and
the success of Paragon in writing new business. Last year new mortgage advances
grew by 56% to £382 million.

A specialist lender concentrating on the buy-to-let market, Paragon is the
country's most frequent issuer of mortgage-backed securities, having launched
its first transaction in February 1987. Since then, assets totalling some £8
billion (mortgages and car, retail and personal loans) have been securitised by
Paragon in 37 public transactions.

Thanks to the quality of the buy-to-let portfolio of Paragon Mortgages, this -
Paragon's 38th transaction - requires credit enhancement amounting to only 1.75%
of principal (£8.75 million). This reflects the fact that the rating agencies
have over the past few years become increasingly comfortable with the high
credit quality of buy-to-let mortgage assets. Class A notes have been allocated
the highest triple-A rating by the three major rating agencies, Moody's,
Standard & Poor's and Fitch.

Nigel Terrington, chief executive of Paragon, comments on the deal:

'The structure of this transaction, the triple-A rating given to the Class A
notes, and the low level of the first loss fund, provide tangible evidence of
the market's view that buy-to-let in general, and Paragon Mortgages in
particular, represent outstanding credit quality. Having been the first to tap
the mortgage-backed market some 15 years ago, we are delighted to have completed
our largest deal ever'.

For further information, please contact:

Nigel Terrington, Chief Executive                  John Wriglesworth
Paragon Group of Companies                         The Wriglesworth Consultancy
Direct line: 0121 712 2024                         Office: 020 7620 2228
Office: 0121 712 2066                              Mobile: [phone]
                                    
Notes to editors:

This transaction

The present deal is arranged by ING Barings on behalf of Paragon Mortgages
Limited.

This £500 million transaction comprises £457.5 million (91.5%) Class A floating
rate notes due 2032 and £42.5 million (8.5%) Class B floating rate notes due
2044.

Class A notes are rated Aaa/AAA/AAA and Class B notes A2/A/A by Moody's/Standard
& Poors/Fitch respectively.

Class A notes attract a margin of 26 bp and Class B notes a margin of 85 bp over
3 month LIBOR.

Credit enhancement is 1.75% of the principal amount of the notes issued, i.e.
£8.75 million.

Paragon Mortgages as originator will sell principally buy-to-let mortgages to
the issuer, with a smaller component (approx. 15%) comprising commodity
mortgages from previous deals which have now been collapsed.

Paragon

The Paragon Group of Companies PLC is one of the UK's largest specialist lenders
offering residential investment mortgages, and personal, retail and vehicle
finance. In the preliminary results for the year ended 30 September 2001,
pre-tax profits rose 14.1% to £40.5 million (2000: £35.5 million), with net new
lending up 56% and record growth in buy-to-let mortgages.


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