Paragon Group profits 13.4% higher than previous year

The Paragon Group of Companies’ pre-tax profits increased by 13.4% in the six months to March 2012 to reach £44.8m.

Paragon Mortgages’ parent advanced £87.2m of new buy-to-let loans in the period and £2m of further advances were made to existing borrowers, compared with £29.6m of new loans and £2.7m of further advances in the same period last year.

It also completed its first securitisation since 2007, for £163.8m – the first deal consisting solely of buy-to-let loans by any lender in the UK since the credit crisis.

John Heron, managing director of Paragon Mortgages, says: “The first half of the year was successful in terms of the level of applications received for buy-to-let loans, from both new and existing customers, following the introduction of 50 new products launched in January.

“Our strategy for the rest of the year is to generate further buy-to-let business and keep our low level of arrears across all of our loan portfolios.”