Paragon Bank increased its focus on specialist buy to let lending during the first half of its financial year as its mortgage pipeline grew strongly.
Announcing its half-year results for the six months to March 31, Paragon posted a 17.3 per cent year-on-year increase in its buy to let new business pipeline to £926.7m.
The pipeline was comprised of 97 per cent of specialist buy to let business, compared to 92.9 per cent during the same period in 2020.
Buy to let lending was £714.9m for the period, some 57.8 per cent up on the second half of 2020.
Overall, Paragon Banking Group post a 44.9 per cent increase in underlying profits to a record high at the half year of £82.9m with statutory profit before tax up 68.8 per cent at £96.4m.
The bank’s director of mortgages, Richard Rowntree, says: “The period saw a strong recovery in our trading volumes, with the business trading efficiently through the latest lockdowns and restrictions.
“Our new business pipeline has recorded excellent growth, supported by the stamp duty holiday, but also landlords reacting to record levels of tenant demand.”
And he concludes: “These are a strong set of results given the ongoing disruption caused by the pandemic and the continued operational impact on the housing market. Landlords have demonstrated a clear appetite to invest in new property and to grow their portfolios, benefitting the private rented sector.”