Paragon’s Annual Figures show Buy to Let is Booming

14 December 2012 Categories: News

Paragon’s Annual Figures show Buy to Let is Booming

Figures released by Paragon Mortgages, the buy to let specialist, have shown that the buy to let industry is still growing even though other areas of the UK mortgage industry continue to struggle. Paragon Mortgages, as part of the parent company The Paragon Group of Companies, reported pre-tax profits of £95.5million for the year September 11-12; an increase of 18% on the previous years reported profit.

These profits are a result of an increase in lending of 45% for the same time period. To September 2012, Paragon mortgages lent £187.3million in the form of buy to let loans, up from £127million in the previous year. As a result, Paragon’s total warehouse funding facilities now stand at around £450million.

Managing Director of Paragon Mortgages, John Heron, commented on the positive figures saying, “Buy-to-let is the only area of the mortgage market that is growing at a healthy and sustainable level. We have a strong capital base and are well-funded which gives us a platform on which to grow our buy-to-let lending through our Paragon Mortgages and Mortgage Trust brands.”

He went on to say, “This says something positive about Paragon, which has been successfully issuing transactions since 1987. These have been buy-to-let-only transactions, which no other lenders have achieved and the prospects for the markets have been easing.”