View more on these topics

Paragon Mortgages buy-to-let lending up 15%

John Heron

Paragon Mortgages advanced £102.3m in buy-to-let loans in the six months to the end of March, up 14.6 per cent on the £89.2m advanced over the same period the year before.

Announcing its half-year results to the end of March today, the lender attributes the growth to an increase to its warehouse credit facilities.

Paragon now has a total credit facility of £450m, after extending the £200m facility from Macquarie Bank to £250m in November and agreeing a further £200m facility with the wholesale division of Lloyds Bank in September.

Paragon’s parent, the Paragon Group of Companies, is still keen on gaining a banking licence to form a banking subsidiary which would be funded by retail deposits, although there are no new details in the half-year results. The results say progress will be provided to shareholders “in due course”.

Paragon says it had a £241.2m pipeline of new business at the end of March, up 134 per cent on £103m a year earlier.

Director of mortgages John Heron says he expects the lender to continue to grow its lending in the coming months.

He says: “The increased funding capacity combined with our ability to fund at tighter margins has allowed us to compete much more effectively in our core market and lay the foundations for further and sustainable growth in the coming months.

The pipeline of new business is very healthy at £241.2m – this has more than doubled in the three months to the end of March. We are expecting to see a significant increase in loan completions in the second half of the financial year following such a successful period, as the benefit of this increase in lending activity comes through.”

The percentage of its mortgage book in arrears by three months or more stood at 0.4 per cent at 31 March, down from 0.55 per cent a year earlier. At the end of March the Council of Mortgage Lenders’ average stood at 1.22 per cent.

However, Paragon says it has “zero” arrears on the portfolio originated since its return to lending in September 2010.

At a group level, Paragon made a pre-tax profit of £49.1m in the six month to the end of March, up 9.6 per cent on the £44.8m reported a year earlier.



MPs back Arch cru legal battle

A proposed legal action against Capita Financial Managers for its failures in supervising the Arch cru funds has won the backing of influential MPs including George Galloway and Anne Begg. Trade body IFA Centre held a briefing with MPs, advisers and investors last week at the House of Commons into the collapse of Arch cru […]

Money Advice Service calls for evidence to help form new five-year strategy

The Money Advice Service is calling for firms, individuals and charities to provide evidence of projects and initiatives that have successfully improved people’s finances to help form its new five-year strategy. In the next 10 weeks, the MAS will hold a series of events across the UK to collect evidence as part of a major study into […]


Stephen Lowe: How do you engage people about LTC?

Recent months have brought a new intensity to plans to reform the long-term care system. Progress towards tackling such a thorny issue is to be welcomed and is a reminder that we should take this chance to start preparing ourselves for the challenges and opportunities that such a major shake-up will create. George Osborne’s announcement […]


Cofunds chairman Charlie Eppinger steps down as L&G completes acquisition

Cofunds chairman Charlie Eppinger has stepped down and retired from the Cofunds board following the completion of Legal and General’s acquisition of the platform. In March, L&G announced it was acquiring the 75 per cent share capital of Cofunds it did not already own, for a cash consideration of £131m. The acquisition valued Cofunds at […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm