According to Paragon’s latest trading update covering the period from 1 October to 31 December, the BTL pipeline at the end of the quarter stood at £691.6m, nearly a quarter above its position a year earlier.
BTL redemption came to an annualised redemption rate of 7.7%, a jump from 6.4%. This is due to “continued strong retention levels”.
The report added that the level of BTL three-months-plus arrears was 13 basis points lower than its December 2023 level at 44 basis points.
Net loan balances grew by 1% to £15.9bn during the quarter, up 5.5% from December 2023.
Commercial lending advances were pegged at £254.2m, a drop from £274.4m. The lender said the fall was due to “timing differences” in its structured lending business, with other business lines performing strongly.

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The value of development finance, which is the new business pipeline and undrawn facilities, comes to 33.5% and 16.1% respectively.
Paragon added that, for 2025, it expected its BTL volumes to come to £1.6bn-1.8bn and that commercial volumes will come to £1.2bn-1.4bn.
Nigel Terrington, Paragon’s chief executive, said: “The first quarter of our new financial year has continued to see good progress, with encouraging new business flows and margins running above expectations.
“The benefits of our digitalisation programme remain evident in both demand and efficiency, and we will roll out further technology-driven changes during 2025.
“The group remains confident in the guidance given for the full year and our strong capital levels mean we are well-positioned to continue delivering strong returns for our shareholders and further support for customers.”
Earlier this month, the bank added limited-edition five-year fixed BTL deals.