Paragon reports £80.8m profit in 2011
The parent company of Paragon Mortgages and Mortgage Trust, praised its strong credit performance and customer retention with new lending successfully re-established and high quality loans originated.
It also announced its first securitisation of buy-to-let loans since 2007 had completed.
John Heron, managing director at Paragon Mortgages, said: “The focus for the year was very much to re-establish our distribution capability and prove our business model.
“Our return to the buy-to-let market was well received and we have seen both strong credit performance across our buy-to-let loan portfolio and customer retention.
“We have successfully rebuilt our relationships with the major mortgage networks, directly authorised intermediaries and buy-to-let specialists and through them are delivering once again a wide range of buy-to-let solutions including products tailor-made for professional landlords with more complex requirements.”
“The buy-to-let market has returned to growth, with the Council of Mortgage Lenders revealing a 39% increase in loans originated in Q3.
Heron said that conditions in the market were improving and, with increasing tenant demand, it was important that landlords had the opportunity to increase their portfolios.
“The market is not without its challenges though,” he added.
“It is most certainly in need of product innovation to increase competition, and is being put under strain by factors in other areas of the housing market. We are well placed to meet these challenges though, building on the foundations we have successfully laid over the last 12 months.”