Paragon Bank’s BTL lending pipeline has grown through 2024 to £1.49bn at the end of September, up 48.2% from the previous year.
During this time Paragon has grown its BTL mortgage book by 4.4% off the back of strong retention activity and new lending.
This has seen the lender’s BTL mortgage book grow to £13.3bn as of the end of September.
The firm’s operating profits increased by 5.4% before fair value items to £292.7m.
Within this 12 month period, lending accelerated in the second half of year with completions 30% higher than in the first six months.
The bank has focused its lending on properties with an EPC rating of between A and C.
These properties accounted for 53.4% of completions - or £795.3m - up from the 49.9% in the previous year.
Redemptions on the BTL book fell to 6.7% from 9% a year previously, with redemptions higher in Paragon’s legacy pre-2010 BTL book.
The post-2010 BTL book, comprised of landlords with more specialist requirements and larger portfolios, grew by 9.7%.
This now represents 79.2% of the mortgage division’s total assets.
Louisa Sedgwick, managing director - mortgages at Paragon Bank, commented: “New lending accelerated in the second half of the financial year, and we enter the new year with great momentum, with our new business pipeline 48% higher.
“[Next year] promises to be an exciting year for Paragon.
“We are launching our new, bespoke mortgage originations platform, making it quicker and easier for intermediaries to submit cases, which will reduce the time from application to offer.”
