Paragon Bank’s BTL lending activity has increased 25% in the first half of its financial year, with £812.2m loans written in the six months to 31st March.
This is up from the £649.3m lent out in the same period of 2024.
Paragon’s mortgage loan book finished the period 4.5% higher at £13.7bn with BTL comprising an “overwhelming majority” of this amount according to the lender.
The annualised redemption rate on the lender’s BTL book was 7.1% for this period with arrears only accounting for 0.51%.
The LTV coverage of the BTL book was unchanged at 62.8%.
Overall, this contributed to the bank’s 5.2% growth in pre-provision profits and a 2.1% increase in underlying profits which rose to £149.4m.
Commenting on the results, managing director of mortgages Louisa Sedgwick (pictured above) attributed some of this BTL growth to the recent launch of the bank’s BTL mortgage origination platform.
“We were delighted to launch our new mortgage originations platform during the period, and we have enjoyed a fantastic response from our intermediary partners,” said Louisa.
“This system is already delivering tangible benefits; our pipeline is now a more accurate reflection of future business as we are able to screen applications more effectively and efficiently and give brokers earlier decisions.”
