Paragon posts “strong” operating profits

John Heron, Paragon Mortgages

The Paragon Group of Companies has posted results for the period 1 April 2014 to 30 June 2014.

The Group’s Interim Management Statement for the third quarter reported strong operating profits for the nine months to 30 June 2014 of £88.3 million, this compares with £75.7 million for the same time period last year – a 16.6% increase.

Paragon Mortgages had completions of £187 million during the quarter, taking buy-to-let advances for the year to date to £456.3 million, an increase of 94.25% compared to the same period the previous year, (£234.9 million at Q3 2013).

The pipeline of applications at the end of the period totalled £349.8 million.

Earlier this month Paragon also completed its 58th securitisation transaction, Paragon Mortgages No.20, which takes the total Group issuance to £953 million over the past 12 months.

John Heron (pictured), managing director of Paragon Mortgages, said: “The last quarter was very successful for the mortgage business and the wider Group. The buy-to-let business continues to grow, and the credit quality remains outstanding.

“The three month plus arrears rate has also reduced from 0.30% at 31 March 2014, to 0.28% at the end of June. This compares very favourably with the market level of buy-to-let arrears which according to CML data was 0.95% at the end of Q1 2014.”

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