Paragon looking for acquisitions

Yuan Phoon

July 28, 2011

The buy-to-let specialist added that preparations for a new securitisation issue were “well advanced.”

In a statement, Paragon said: “We continue to pursue portfolio acquisition opportunities and loan administration contracts to supplement our growth potential.”

The news comes after Paragon revealed it had made £65.7m in new buy-to-let lending for the three months to the end of June.

The figure for the period represented over two thirds of Paragon’s buy-to-let new lending completions since the start of its financial year on 1 October 2010.

In its quarterly update to the stock exchange, Paragon said it had completed £99m of buy-to-let business over the past nine months, which includes £3.7m in further advances to existing customers.

Paragon also revealed that the credit performance of its portfolio continued to improve.

John Heron, group director of mortgages at Paragon, said: “We had a strong focus on rebuilding our distribution network and brand awareness following our return to the market and it’s pleasing to see that approach start to deliver.

“We have developed our new lending proposition over the past nine months and now have a comprehensive product set, with Paragon Mortgages focusing on professional landlords and Mortgage Trust catering for the mainstream market. The fact that two thirds of completions came in the third quarter of our financial year alone shows our new lending is building strong momentum.

“Landlords are benefitting from excellent market conditions at the moment, with the highest levels of tenant demand we have seen in modern times, low interest rates and a stable housing market. Long-term socio-economic and demographic changes signal sustained growth for the private rented sector and landlords will be central to driving this growth.”

Sign up to our daily email