Securitisation Release

Paragon Group Of Companies PLC
27 May 2004

PARAGON ACCESSES NEW FUNDING MARKET IN ITS LARGEST EVER SECURITISATION DEAL


The Paragon Group of Companies PLC yesterday completed a financing totalling
£900 million (US$1.6 billion) backed by prime buy-to-let mortgages. This is the
largest securitisation by Paragon to date and for the first time includes loans
originated by Mortgage Trust bringing total issuance to £9.7 billion through 43
public transactions.

Paragon has offered bonds in multi-currencies attracting new investors in the
United States and Continental Europe. Demand was strong across all currencies
and the transaction size was increased in an attempt to satisfy the demand.

The notes were issued in various tranches as well as multi-currencies and were
rated by Standard & Poor's, Moody's and Fitch.

The pool consists almost entirely of buy-to-let mortgages. Paragon is a leading
player in the increasingly important buy-to-let market where it specialises in
meeting the requirements of the professional landlord. The credit quality on all
of Paragon's buy-to-let portfolios has been excellent.



Nick Keen, Paragon's Finance Director comments:

'This transaction continues the development of the Group's securitisation
programme, bringing the Paragon name again to investors in the US, as well as to
investors in Europe and the UK. Investor interest was highly positive and
resulted in the upsizing of the deal.

Paragon continues to focus on the professional buy-to-let market where asset
performance remains excellent and where growth prospects are high. The recent
acquisition of Britannic Money, now branded Mortgage Trust, which now also
focuses on originating prime buy-to-let mortgage assets, will enhance the
Paragon programme further.'


For further information, please contact:
Nick Keen, Finance Director
Paragon Group of Companies
Direct line: 0121 712 2060

Mark Baker
The Wriglesworth Consultancy
Office: 020 7620 2228

Notes to editors:

 1. The Paragon Group of Companies PLC is one of the UK's largest independent
    specialist lenders offering buy-to-let mortgages, personal loans, retail and
    vehicle finance, with over £5 billion of assets under management. In its
    interim results for the six months ended 31 March 2004, pre-tax profits rose
    41.5% to £33.1 million (2003 H1: £23.4 million), with buy-to-let mortgage
    advances up 141.1% to £797.7 million (2003 H1: £330.9 million) and provision
    for losses down to £6.9 million (2003 H1: £8.8 million).
 2. The £900,700,000 million (sterling equivalent) of Notes are issued by Paragon
    Mortgages (No.7) PLC in 5 classes and in three currencies. The Class A1
    senior notes are issued in three currencies, US Dollars ($450,000,000), GBP
    Sterling (£220,000,000) and Euros (E500,000,000). All of the A1 senior notes
    have been assigned a rating of Aaa/AAA/AAA by Moody's, Standard & Poor's and
    Fitch respectively who have assigned ratings of A2/A/A, respectively, to the
    Class B Notes. The Class B Notes are issued in two currencies US Dollars
    ($82,500,000) and Euros (E65,000,000). Although all classes of Notes share
    the same security, the Class A Notes have priority over the Class B Notes to
    quarterly payments of interest and as to principal in the event of
    enforcement.
 3. The margins over the relevant currency reference rate for each of the
    tranches of the Notes are: 21bp for the Class A notes, 75bp for the Class B
    Notes.
 4. The Notes are secured by a pool of predominantly prime buy-to-let mortgages,
    as well as a cash fund of 2.2% of the aggregate current balances of the
    Notes. Paragon Finance PLC is the administrator for the issue.
 5. Royal Bank of Scotland and Barclays Capital are joint book runners for the
    offering.
 6. Barclays Capital is the investment banking division of Barclays Bank PLC, one
    of the largest multi-national financial services groups in the world. With a
    focus on financing, risk management and corporate finance advisory services,
    Barclays Capital acts internationally as an intermediary and adviser to
    corporates, financial institutions, governments and supranational
    organisations. Barclays Capital, which has the support of an AA rated parent
    bank with a balance sheet of over £400 billion, has offices in 23 countries
    and around 5,500 people worldwide, giving it the reach and distribution
    power to meet clients' needs wherever they are based.
 7. The Royal Bank of Scotland is a broadly based financial services group with
    operations spanning clearing banking, corporate banking, financial services,
    investment management and insurance, both in the UK and overseas. It is the
    second largest in bank in Europe and the fifth largest banking group in the
    world by market capitalisation. The Group serves over 20 million customers.
    Through its Financial Markets division it provides specialist services in
    global foreign exchange, currency and structured derivatives, money markets,
    together with a wide range of interest rate management services to The Royal
    Bank of Scotland and NatWest international corporate and institutional
    client base.



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