Total new lending for the period rose by 36 per cent annually to £708m, while BTL mortgage advances increased by 37 per cent to £408.5m.
This was in line with the board’s expectations for the period, the group said.
Paragon’s commercial lending volumes also went up by 37 per cent year-on-year to £298.8m. It said each of the four business lines within commercial lending, which include SME lending, development finance, structured lending and motor finance, reported growth.
Its BTL pipeline is valued at £1.1bn, 6.2 per cent up on the same period last year. Mortgage redemptions for the period totalled £193.8m, which represented an annualised redemption rate of 6.8 per cent which the group said was below typical averages.
Looking ahead, Paragon said although there continued to be “macro-economic uncertainties” stemming from the ongoing effects of the pandemic, its operational and financial performance remained “strong” and its guidance for the year was unchanged.
Nigel Terrington (pictured), chief executive of Paragon, said: “The momentum that underpinned the delivery of our 2021 results has been maintained through the first quarter of our new financial year, with strong new business flows, improving margins and capital strength generated from our focus on specialist customers and markets.”