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Paragon’s Q3 mortgage advances up nearly eight per cent at £1.2bn

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  • 27/07/2022
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Specialist buy-to-let lender Paragon’s has issued around £1.3bn in mortgage advances year-to-date, up 7.5 per cent on the year before.

In its latest results, the lender said its mortgage lending figure was notable as last year benefited from a stamp duty boost.

Paragon added that the growth in its loan book was 7.2 per cent this year, coming to £14bn, adding that this would have been higher, but it had disposed of a portfolio of Idem Capital loans.

It attributed the loan book growth to its strong annualised redemption rate for its buy-to-let portfolio, which stands at 7.8 per cent year-to-date. This compares to 10.3 per cent in 2018 and 8.6 per cent in 2019.

Its buy-to-let pipeline had risen by 46.2 per cent to £1.3bn, and its development finance pipeline stood at £700m which is in line with the same period last year.

The lender added that arrears of three months or more in its buy-to-let portfolio was 15 basis points, which is down from 28 basis points in the same period last year.

Paragon added that the weighted loan to value ratio was 57.6 per cent at quarter-end.

It said it was conscious that economic conditions were “becoming increasingly challenging” but its balance sheet was strong, and it would support its customers.

Paragon reiterated its mortgage performance for 2022, with at least £1.8bn in mortgage advances forecast.

Nigel Terrington (pictured), Paragon’s chief executive, said: “Paragon has delivered another strong performance, with continued momentum in new business flows and improving margins driving robust revenue growth, whilst maintaining a tight cost focus.

“With strong levels of capital and an exemplary credit performance, we are well positioned to deal with any economic weakness that emerges. We continue to deliver against our strategy to the benefit of all our stakeholders and are particularly excited about the benefits our digitalisation programme will create.”

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