Paragon increases lending by 85%

John Heron

Paragon Mortgages increased its lending 84.5 per cent year-on-year in the first six months of 2016.

The buy-to-let specialist lent £823.6m in the first half of the year, compared with £446.2m in the same period of 2015.

It says the increase was down, in part, to an increase in activity as landlords looked to beat the 1 April stamp duty deadline.

The Paragon group reported a 12.5 per cent increase in profits, from £63.9m to £71.9m.

Paragon Mortgages managing director John Heron says: “We have had a very good first half, with strong new lending volumes whilst maintaining our high underwriting standards and strong credit profile.

“Demand for private rented property remains strong regardless of the significant policy developments we have seen in recent months. The Prudential Regulation Authority’s proposals, currently in consultation, will introduce a level of discipline to the market that we welcome and in particular require that more complex business is subject to an appropriately robust commercial assessment, similar to that which Paragon already applies to more complex business. Paragon is therefore well positioned to deliver solutions for landlords through a period of significant change in the market.

“We have every confidence in the buy-to-let market, with tenant demand continuing to remain high and in some areas increasing, the PRS will remain a fundamental part of the UK’s housing market now and in the future.”