Paragon Group reports significant growth in second charge lending

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  • 25/05/2016
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Paragon Group reports significant growth in second charge lending
Paragon Personal Finance has reported a significant boost to second charge lending levels, in-line with growth across the market.

In the Paragon Group’s half year report, it said it completed £26m in second charge lending in the six months ending 31 March, up from £3.8m in the half year to 31 March 2015 and an increase of 584%.

The average loan size in the period was £53,000 and the average loan-to-value ratio was 63%.

Richard Doe, managing director at Paragon Bank, said: “Paragon Group have built a business out of specialist lending, driven by detailed underwriting that takes each case on its own merits.

“The application of this ethos to a diverse range of lending has driven continued success at Paragon Bank, allowing us to post our maiden profit just two years after launch. Second charge lending has been key to this diversification strategy.”

The bank said that none of it’s originated second charge mortgage accounts were in arrears as of 31 March 2016.

The second charge mortgage market, as a whole, experienced growth to the six months ending 31 March, up 33% on the previous year to £479m.

Paragon also grew its buy-to-let business, with lending to landlords up 85%.

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