The buy-to-let revival continues with Paragon Group reporting a 90% surge in lending to £360 million in the last 12 months.
This follows recent CML figures showing that low mortgage rates and a buoyant rental market have driven a dramatic rise in buy-to-let lending and loan values over the last year.
Paragon group, parent company of specialist buy-to-let lender Paragon Mortgages, also reported a 10% increase in pre-tax profits to £105.4 million for the year ended 30 September 2013.
It said that preparations for a new bank are progressing well.
During the year, buy-to-let advances leapt 90.5% to £359.8 million, up from £188.9 million in 2012. The pipeline of new buy-to-let business at 30 September 2013 was £231.9 million, up from £129.9 million in 2012.
Paragon Mortgages launched two securitisations in the last 12 months and also increased its warehouse facility to £450 million.
Director of mortgages John Heron said: “It has been an excellent year for the group, with record profits and a sharp increase in buy-to-let lending on the back of improved funding.
“The mortgage business has performed strongly, not only increasing lending, but developing new, competitive products and launching two securitisation deals.
“We have successfully laid the foundations for further growth for the future, as the buy-to-let market continues to gain momentum and demand from landlords remains high.”
Paragon also issued its first retail bond successfully.
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