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hero Half Year Results

PARAGON'S NEW BUY-TO-LET LENDING ALMOST DOUBLES IN FIRST HALF OF THE YEAR

  • New buy-to-let lending reaches £823.6 million for six months to end of March
  • Stamp duty increase drives sharp rise in completions
  • Group underlying profits increase by 12.5%

The Paragon Group of Companies, the parent company of Paragon Mortgages, has today released its half-year results for the six months ended 31 March 2016.

The Group reported a 12.5% increase in underlying profits to £71.9 million (H1 2015: £63.9 million). During the period new buy-to-let lending reached £823.6 million, compared to £446.2 million at the half-year point in 2015. The significant increase reflects the strength of the Group’s position in the buy-to-let market and the acceleration of landlord purchasing activity ahead of the stamp duty increase.

John Heron, Director of Paragon Mortgages, said...

John Heron
We have had a very good first half, with strong new lending volumes whilst maintaining our high underwriting standards and strong credit profile.Demand for private rented property remains strong regardless of the significant policy developments we have seen in recent months. The PRA proposals, currently in consultation, will introduce a level of discipline to the market that we welcome and in particular require that more complex business is subject to an appropriately robust commercial assessment, similar to that which Paragon already applies to more complex business. Paragon is therefore well positioned to deliver solutions for landlords through a period of significant change in the market.We have every confidence in the buy-to-let market, with tenant demand continuing to remain high and in some areas increasing, the PRS will remain a fundamental part of the UK's housing market now and in the future.
Paragon Mortgages is a trading style of Paragon Mortgages (2010) Limited (Registered in England No:6595834) and Paragon Bank PLC (Registered in England No:05390593). Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Paragon Bank PLC is registered on the Financial Services Register under the Firm Reference No:604551. Registered office: 51 Homer Road, Solihull, West Midlands B91 3QJ.