Paragon reports increase in profits

John Heron

The Paragon Group of Companies plc has reported its results for the first half of the year ending 31 March 2012.

Profits before tax rose by 13.4% to £44.8 million.

Meanwhile, £87.2 million of new buy-to-let loans were advanced.

John Heron, managing director of Paragon Mortgages, said: “The group delivered a further period of growth during the first half of the year, with an increase in profits.

“We have seen a sustained level of buy-to-let mortgage business during the year and we also successfully completed our first securitisation since 2007 which was also the first deal consisting solely of buy-to-let loans by any lender in the UK since the credit crunch.

“The first half of the year was successful in terms of the level of applications received for buy-to-let loans, from both new and existing customers, following the introduction of 50 new products launched in January.

“Our strategy for the rest of the year is to build upon the success of the first six months, generating further buy-to-let business and keeping our low level of arrears across all of our loan portfolios.”