Paragon Bank increased buy-to-let lending by 19.5% during the first half of its financial year on the back of strong demand from portfolio landlords.

Paragon completed £854.6 million of buy-to-let loans in the six months to 31 March 2022, 98.2% of which were classed as specialist buy-to-let.

The period saw a particularly strong increase in green mortgage completions after Paragon launched its green product range offering a pricing incentive for more energy efficient properties. A total of £353 million of completions were for properties with an EPC of between A and C, a 38.4% increase on 2021.

The pipeline of new buy-to-let business ended the period 44.4% higher than last year to £1.34 billion. Meanwhile, the mortgage loan book ended the period at £12 billion, compared with £11.13 billion in 2021.

Total lending across the Paragon Banking Group’s divisions increased by 32.2% compared to the same period last year to £1.49 billion. Pre-tax profits at the company increased 49% to £143.6 million.

Richard Rowntree, Paragon Bank Managing Director of Mortgages, said: “These are an excellent set of results which reflect Paragon’s focus on the specialist end of the buy-to-let market. Portfolio landlords demonstrated a strong desire to acquire additional property during the period, helping to underpin the private rented sector at a time of record tenant demand.”

He added: “I am particularly pleased to see landlords starting to prepare for expected changes to minimum energy performance standards in the private rented sector, with growth in lending on EPC A-C properties. This will be a big focus for the industry as we move towards a net zero future.”

Arrears on the buy-to-let book remained low and broadly stable in the six months at 0.15% (31 March 2021: 0.22%). Paragon’s buy-to-let arrears remain very low compared to performance in the national buy-to-let market, as they have been through the life of Paragon’s product.

The Paragon Banking Group’s half-year results statement can be viewed here.

For further information contact:

Michael Clarke
Head of Media Relations
07740090746

www.paragonbank.co.uk 

Notes to editors:

Paragon lends to private individuals and limited companies and has mortgages suitable for single, self-contained properties, as well as HMOs and multi-unit blocks. Paragon can accommodate higher aggregate lending limits and more complex letting arrangements including local authority leases and corporate leases along with standard ASTs.

Paragon introduced its first product aimed at the professional property investor in 1995 and is a member of UK Finance, the Intermediary Mortgage Lenders Association (IMLA), National Landlords Association (NLA) and the Association of Residential Letting Agents (ARLA). 

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.