Paragon doubles buy-to-let lending in six months

Paragon Mortgages has almost doubled its buy-to-let lending in just six months.

New buy-to-let lending hit £823.6 million for six months to end of March, according to results published by parent company Paragon Group of Companies yesterday.

The group reported a 12.5% increase in half-year underlying profits to £71.9 million, up from £63.9 million in the first half of 2015.

Buy-to-let lending hit £823.6 million, compared to £446.2 million at the half-year point in 2015, a rise of 85%.

Paragon said the “significant increase” reflects the strength of its position in the buy-to-let market and the acceleration of landlord purchasing activity ahead of the stamp duty increase.

John Heron, managing director of Paragon Mortgages, said: “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.

 “We have every confidence in the buy-to-let market, with tenant demand continuing to remain high and in some areas increasing, the private rented sector will remain a fundamental part of the UK’s housing market now and in the future.”