Paragon Mortgages’ parent company, the Paragon Group of Companies, has today released its financial results for the year ended 30 September 2016.
The Group reported a strong performance across all its business lines, contributing to a 9.1% increase in underlying profits totalling £146.9 million for the period (2015: £134.7 million).
John Heron, Director of Paragon Mortgages, said...
This was very much a year of two halves for buy-to-let with very strong completion levels being seen in the run up to the stamp duty increase in April followed by a commensurate reduction in activity levels across the market from April.
However, our pipeline of new business is now gathering momentum with an increase of approaching 20% in October. Much of this is due to the success of Paragon Bank in providing us with diversified funding allowing us to deliver a series of competitive products which is driving an increase in application volumes.
In particular we are seeing an improvement in the professional landlord segment of the market, a sector we are well positioned to satisfy given our extensive experience of meeting their individual requirements.
Whilst the buy-to-let market has had a challenging year, we continue to see the potential the sector has to offer. With strong rental demand, there will continue to be a growing need for professional landlords to provide quality, private rental accommodation and, with our 20 years’ experience in the market, we remain very well-positioned to work with these landlords.