Paragon Announces Record Profits from Buy to Let Lending

29 November 2012 Categories: News

Paragon Announces Record Profits from Buy to Let Lending

Paragon Mortgages, the specialist buy to let lender who pulled out of the market in 2008 only to re-launch their services in 2010, has announced the highest company profits to date. In the year September 2011 to September 2012, Paragon experienced an underlying profit increase of 16%, or £94 million. The company also announced an increase in new buy to let lending of 45%, bringing the total for the year up to £184 million.

The huge profits experienced by Paragon are thought to be due to the company’s new strategy of providing larger loans to professional landlords. Their success has also been aided by the lending embargo implemented by many of the high street banks, which has resulted in thousands of wannabe first-time buyers being forced to remain in rental properties while they attempt to save the significant amount needed for a home owner mortgage deposit.

Paragon aren’t the only buy to let lender doing well though, as buy to let remains the only sector of the mortgage market to show growth in the last 12 months. According to the Council of Mortgage Lenders, the total buy to let loan advance figure for the last year stands at £15.7 billion – a 26% increase on the previous 12 months.