This represents over two thirds of Paragon’s buy-to-let new lending completions since the start of its financial year on 1 October 2010. It has lent £99m of investment loans over the past nine months, including £3.7m in further advances.
Speculation over when Paragon will have lent enough to launch its first securitisation since it began lending again has been rife. The first mortgage backed securities sale was expected as early as Summer, although the debt crisis in Greece and the US and the Summer lull has flattened investor appetite.
Commentators suggest any mortgage-backed securities offering from Paragon will need to top £250m to interest investors.
However, Paragon’s credit performance continued to improve, according to the interim report, with three month plus arrears across the portfolio standing at 0.69% against 0.75% against previous quarterly figures.
John Heron, Paragon group director of mortgages, 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.”
He added: “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.”
He said long-term socio-economic and demographic changes signal sustained growth for the private rented sector and landlords will be central to driving this growth.
The interim management statement said the firm continued to pursue portfolio acquisition opportunities, whilst attracting increasing new lending volumes, portfolio investment and loan servicing opportunities.
Paragon’s 53rd and last securitisation was on 20 July, 2007 taking the total to £19.5bn. The specialist buy-to-let lender closed to new customers in 2008, when the credit crisis restricted its ability to borrow on the wholesale money markets.
However, the company secured a £200m warehouse facility from Macquarie Bank and began lending in September 2010 intending to warehouse loans until ready to relaunch into the mortgage-backed securitisation market.
