Paragon Mortgages’ New Business Tally down Year on Year

26 July 2012 Categories: News

Paragon Mortgages’ New Business Tally down Year on Year

The latest Interim Management Statement released by Paragon Mortgages’ parent company, Paragon Group of Companies, has shown a 31% drop in the level of advances made during the second quarter of the year when compared to the same period last year.

The statement quoted that Paragon Mortgages had advanced a total of £45.1million to new buy to let investors during the months April to June, plus another £2.1million to existing borrowers. The same period last year however saw a total of £65.7million being advanced, a difference of over 30%.

This fall in buy to let advances by Paragon Mortgages is thought to be related to the number of alternative mortgage products that have been introduced to the market recently, and is not an indication that borrowing is becoming more stringent. The latest statement mentioned that over 10,000 new accounts had been processed during the quarter, with thousands more still under review.

The growth of the private rental sector has prompted Paragon to look at expanding and developing the buy to let business aspect of the company following their current commitment period, which ends in December 2012. With the number of properties within the private rental sector now standing at 3.7million it easily rivals the social sector and could become the dominant force before very long.