Paragon sees 167% surge in buy-to-let lending

Buy-to-let lending has significantly increased at Paragon in the six months to March 2014 with £269.3m in loans advanced, up 167 per cent on the same period last year.

Over the period the group generated pre-tax profit of £58.2m, a 19.3 per cent increase on the same period last year, and it announced optimistic projections for the months ahead as it cited a new business pipeline of £348.1m.

During the first half of the year the firm was also granted its banking licence and subsequently launched Paragon Bank in February. The group also completed its latest securitisation deal in March.

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John Heron, director of mortgages at Paragon, said: “Thanks to a material improvement in the scale and the cost of our funding facilities we have been able to compete much more effectively.

“As a result we have seen a surge in buy-to-let lending activity as the wider market has gained momentum, and we are positioned well for future growth, particularly with the extension of our warehouse facility from £450m to £550m.”