The figure for the period represents over two thirds of Paragon’s buy-to-let new lending completions since the start of its financial year on 01 October 2010. In its quarterly update to the stock exchange, Paragon said it has completed £99 million of buy-to-let business over the past nine months, which includes £3.7 million in further advances to existing customers.
Paragon’s Interim Management Statement, which covers the period from 1 April 2011 to 30 June 3011, also revealed the credit performance of Paragon’s buy-to-let portfolio continued to improve. Three month plus arrears across the portfolio stood at 0.69% at the end of the period, compared to 0.75% at the end of the previous quarter.
John Heron, Paragon Group Director of Mortgages, said:
“We had a strong focus on rebuilding our distribution network and brand awareness following our return to the market and it’s pleasing to see that approach start to deliver. We have developed our new lending proposition over the past nine months and now have a comprehensive product set, with Paragon Mortgages focusing on professional landlords and Mortgage Trust catering for the mainstream market. The fact that two thirds of completions came in the third quarter of our financial year alone shows our new lending is building strong momentum.
“Landlords are benefitting from excellent market conditions at the moment, with the highest levels of tenant demand we have seen in modern times, low interest rates and a stable housing market. Long-term socio-economic and demographic changes signal sustained growth for the private rented sector and landlords will be central to driving this growth.”
