Banking group increases mortgage lending by 20 per cent to £1.9bn

Solihull-headquarted Paragon Banking Group has reported a total of £1.9bn of new lending across all business lines in the nine months to 30 June 2019.

This represents a 20% increase on the previous year, which saw Paragon’s mortgage lending grow from £1.13bn to £1.19bn.

The group said its specialist focus on professional landlords had enabled it to increase its share of the market, with 89% of completions being from complex landlords, compared to 76% in 2018.

A particularly successful was its for buy-to-let, with a new business pipeline reaching £733m, up from £71m in the previous quarter.

It also reported that annualised buy-to-let redemptions continue to be encouraging at 8.6%, down 2.1% from the previous year and its retail savings deposits rose to £6.1bn at the quarter end.

“We have delivered strong new lending across all our business lines and the buy-to-let pipeline has grown despite the uncertain economic backdrop,” said John Heron, Managing Director of Mortgages at Paragon.

“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.

Last month Paragon’s Structured Lending team supported specialist car lender Go Car Credit with £12.5m.

Asset finance and other specialist lending grew by 58% to £0.71bn, compared to the same quarter last year.

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