The buy-to-let market is going from strength to strength, reveals year end figures reported from Paragon Mortgages.
Paragon reports a 47.7% uplift in gross new buy-to-let lending for the year ended 30th September 2002. Total gross new lending was £563.6 million this year against £381.6 million for the previous year.
Net mortgage assets outstanding rose by 36.2% to £1,406.2 million against £1032.2 million for the previous year.
John Heron, managing director of Paragon Mortgages, says: “It has been a most successful year in terms of new business growth and for the increase of net assets outstanding. As well as demonstrating the success of Paragon Mortgages, our results underline the strength of the buy-to-let sector.”
Paragon reports that 80% of its borrowers are professional buy-to-let landlords and attributes its success this year again to the expansion of portfolios by existing customers as much as it being due to the numbers of new customers.
Heron says: “Our regular surveys show our borrowers are financially astute people who want to increase their interest in residential investment property.”
Coupled to strong growth, Paragon reports high credit standards for buy-to-let with a decrease in the already small numbers of accounts in arrears.
Heron adds: “The success of the business, the confidence expressed by the increases in portfolio size among so many of our borrowers and their remarkably high credit quality all demonstrate buy-to-let a growth sector for both the mortgage market and the property market.”