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BTL growth contributes to healthy profit for Paragon

John Heron

Paragon Mortgages’ parent company the Paragon Group of Companies has reported a £95.5m profit for 2012, up 18 per cent from £80.8m in 2011.

Buy-to-let lending was up 45 per cent for the year ending 30 September with £184.3m advanced, up from £127m in 2011.

Total warehouse lending facilities increased to £450m.

Paragon Mortgages managing director John Heron says: “Our focus for this past year has been to grow the buy-to-let business and increase funding capacity. This has been successfully achieved.

“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.”

Paragon launched a £200m securitisation in October which it said would be used to fund new lending.

In September, the buy-to-let lender secured a second £200m warehouse facility with Lloyds Bank to be used alongside the existing £200m facility from Macquarie Bank.

The Macquarie facility was renewed on 5 November and extended to £250m.

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