Paradigm increases mortgage business by 29%

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Paradigm Mortgage Services facilitates £3.45bn of mortgage lending in 2015.

Last year’s figure was a 29.2 per cent increase on the £2.67bn written in 2014.

The mortgage club said a third of its business was buy-to-let and that new-build accounted for 11 per cent.

It is targeting £1.6bn of buy-to-let business in 2016, up from £1.2bn last year.

The club’s average loan size was £191,500 last year while the average LTV was 62 per cent.

Paradigm’s membership now stands at 915 firms with 179 new members joining last year. It wants to grow membership to over 1,000 this year.

Paradigm chief executive Bob Hunt says: “2015 was another strong year for Paradigm, particularly in the mortgage sector where we crossed the £3bn mark by some margin. The ongoing improvement in our performance came off the back of £2.67bn of mortgage completions in 2014, in itself an increase of 44 per cent over 2013’s figures. The upward trajectory of our mortgage completion figures is therefore very pleasing and it means we are targeting £4bn-plus in 2016.

“Significantly, a third of our completions came in the buy-to-let sector, and while there may be a degree of uncertainty about how this market will play out in 2016, we are confident we will increase our numbers in this space. There are clearly a number of unknowns in terms of how landlords will react to the stamp duty changes and the cut to mortgage interest tax relief which kicks in from next year, however we are confident demand will remain strong and that the market will find its new ‘normal’ quite quickly. We are already seeing the sector adapt with greater use of limited company vehicles to house and purchase properties, and we fully anticipate more lenders becoming active in this area.”