Paragon Bank’s gross mortgage lending grows to £1.2bn in quarterly results

Paragon Bank’s gross mortgage lending grows to £1.2bn in quarterly results

 

According to the lender, there were £485.4m of new advances in the period which was its third quarter of trading. It said  combined with commercial lending, this was the group’s busiest quarter for new advances in a decade.

Aggregate new lending totalled £796m in the three months to June, which is more than double aggregate new lending in the same period in 2020 which came to £379.3m.

The lender noted that its buy-to-let (BTL) pipeline had increased by more than a third compared to the same period last year to £911.4m and said application levels were strong despite the ending of the stamp duty holiday.

The report also noted that redemptions in its BTL portfolio increased to an annualised rate of 7.7 per cent in the period, up from 5.3 per cent annually and up from 6.8 per cent in the first half of this year.

The lender said that this reflected “heightened levels of market-wide transactions”.

Paragon said it expected volumes in the mortgage division to be above £1.5bn and for commercial lending to bring in advances of £900m for the year to September.

Nigel Terrington, chief executive, said: “These results demonstrate a continuation of the strong momentum we have in the business. The high level of new originations in the current operating environment is testament to the resilience, capabilities and efficiency of our business model and people.

“We are excited about the prospects for the group which build from the specialist understanding of our markets and customers and our strong capital foundations.”