Paragon sees growth in specialist mortgage business
Specialist portfolio buy-to-let lending grew at Paragon during the final quarter of 2019, according to the company’s latest trading update.
Specialist buy-to-let lending was 1.1% higher year-on-year at £375.4m, whilst the quarter end pipeline figure for buy-to-let was £814m (11.6% higher year-on-year) of which 92% was specialist.
Richard Rowntree, managing director of mortgages at Paragon, said: “Portfolio landlords have demonstrated a greater propensity to buy in the current market.
“These landlords often focus on more complex properties and require a specialist lender, such as Paragon, that can fully cater for their needs.”
Other mortgage and amateur buy-to-let volumes were lower following Paragon’s decision to focus on higher margin, professional business, with overall mortgage lending down 4.0%.
Paragon’s commercial lending new business volumes were 19.9% higher than the comparable quarter at £254.1m.
Nigel Terrington, chief executive at Paragon, added: “The group has made a strong start to our 2020 financial year where good progress has been achieved in our key divisions.
“Our loan portfolios continue to deliver an exemplary credit performance.
“We look forward to the year ahead with confidence as we continue to pursue a diversification strategy.
“Whilst we welcome recent survey reports indicating improving confidence, it is too early to determine whether this will convert into a sustained improvement in economic activity and we will continue to maintain conservative risk appetite.”