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Growing appetite from professional landlords drives strong new mortgage lending

  • Mortgage lending increases to £1.19 billion
  • Complex landlord business makes up 89% of buy-to-let completions
  • Buy-to-let pipeline reaches £733 million

Paragon Banking Group reported another quarter of strong growth today. The latest update shows a total of £1.90 billion of new lending across all business lines in the nine months to 30 June 2019.

This represents a 20% increase on the previous year. Within this total, Paragon’s mortgage lending grew from £1.13 billion to £1.19 billion.

Paragon’s specialist focus on professional landlords enabled it to increase its share of the market, with 89% of completions being from complex landlords, compared to 76% in 2018.

It was a particularly strong quarter for buy-to-let, with the new business pipeline reaching £733 million, up from £711 million in the previous quarter. Annualised buy-to-let redemptions continue to be encouraging at 8.6%, down 2.1 percentage points from the previous year.

Paragon’s retail savings deposits rose to £6.1 billion at the quarter end.

John Heron, Managing Director of Mortgages at Paragon, said:

Paragon is performing well. We have delivered strong new lending across all our business lines and the buy-to-let pipeline has grown despite the uncertain economic backdrop. We’re confident of meeting our objectives for the year as we continue to focus on the needs of larger, more complex and specialist landlords.

The Group also made significant progress with its Commercial Lending division as it continues to diversify its business. Asset finance and other specialist lending grew by 58% to £0.71 billion, compared to the same quarter last year.

23 July 2019

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. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551