Sharp fall in BTL lending at Paragon

Sharp fall in BTL lending at Paragon

The Paragon Group of Companies has reported that its new buy-to-let lending totalled £556.2 million for the six months ended 31 March 2017.

This compares to £823.6 million for the first six months of 2016.

However, its buy-to-let lending pipeline was up 111.7% to £742.3 million.

Non buy-to-let new business as a proportion of total group new business increased to 35.6%, compared to 28.9% over the first half of 2016.

Asset finance lending rose to £106.6 million, while Paragon reported ‘strong growth’ in other lending products, including car finance, second charge mortgages and development finance, to £105.6 million.

Nigel Terrington, chief executive of Paragon, said: “I am delighted to report another strong performance for the period to March 2017, with Paragon delivering improving earnings, dividends and RoTE, the latter progressing towards our medium-term target of 15%. 

“Importantly, this has all been achieved whilst continuing the process of strategically repositioning the Group as a more broadly based specialist banking business, benefitting from the structural changes emerging in the UK retail banking sector.

“With the buy-to-let pipeline having more than doubled this year, and all other areas of the Group experiencing buoyant growth, we approach the period ahead with confidence and optimism in being able to meet our expectations.”