Paragon lent £38.6m in Q4 2011
The Paragon Group of Companies, Paragon Mortgages’ parent company, lent £38.6m in buy-to-let loans during the final quarter of 2011, an interim management statement has revealed.
It advanced £37.4m in new buy-to-let mortgages and a further £1.2m in further advances to existing borrowers during the three month period.
At December 31 2011, its pipeline of new business amounted to £95.1m.
By way of comparison, the lender advanced £8.8m worth of buy-to-let loans between September 2010, when it returned to new lending, and December 2010.
At the end of December 2010, Paragon’s pipeline of new business stood at 75m.
The statement also reveals the Paragon Group of Companies generated operating profits of £20.3m in Q4 2011, up 12 per cent on the £18.1m for the same period in 2010.
Its pre-tax profit for Q4 2011 was £20.8m, 11 per cent higher than the £18.7m profit it made in Q4 2010.
The statement says the group’s loan portfolio continues to perform in line with expectations, with arrears over three months on its buy-to-let book standing at 0.64 per cent at December 31 2011, compared to 0.83 per cent a year before.
It adds that the securitisation launched by Paragon Group in October 2011, its first since 2007, represented a significant step forward in the group’s ongoing funding programme.
It says the deal was upsized from a launch forecast of £150m to £163.8m, confirming investors’ appreciation of the strong credit profile of the assets.