Paragon’s Mortgages has reported an 8% increase in underlying profit before tax to £157 million for the 12 months ended 30 September 2018.
New mortgage lending at Paragon grew by 11% to £1.6 billion in total, with Paragon’s buy-to-let lending up by £96 million to almost £1.5 billion.
In second charge mortgages, new origination levels rose 17% to £71 million and specialist residential lending reached £57 million – up from £4 million in 2017 when Paragon’s initial residential lending pilot was launched.
Buy-to-let completions were dominated by complex business, which includes mortgages for portfolio landlords, finance for HMOs and landlords operating within limited company structures, and increased to 79% of advances.
Paragon ended the year with its pipeline up 29% to £779 million and has recently extended its buy-to-let product range to include mortgages for expat landlords looking to finance rental property in the UK and for UK holiday lets.
John Heron (pictured), Paragon’s managing director of mortgages, said: “The UK private rented sector continues to see strong levels of demand from tenants, which is expected to continue for the foreseeable future.
“The most recent regulatory changes in the buy-to-let market require lenders to collect and analyse more information about the landlord’s property portfolio and, as a result, some lenders have restricted their buy-to-let proposition. However, Paragon’s expertise in complex underwriting is well aligned with these developments, positioning us well to benefit from the changes and increase our market share.”