According to Paragon Banking Group’s latest trading update, buy-to-let (BTL) lending during the first quarter – which goes from 1 October to 3 December 2025 – rose by 0.4% year-on-year to £425m.
Commercial lending advances jumped by 17.6% to £299m annually, the report said.
The firm’s BTL pipeline stood at £722m at the end of the quarter, 4.4% above the same period the year before.
The development finance pipeline and undrawn commitment balance were 4.4% down on the same period the year before at £700.8m.
BTL redemptions came in at an annualised redemption rate of 8.2%, which is up from 7.7% in the same period last year.
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BTL arrears were little changed from 2025 year end and the credit performance of its commercial lending is continuing to “normalise”, Paragon Banking Group said.
Looking ahead for the year, BTL volumes are expected to come to £1.5bn-1.7bn and commercial lending is forecast at £1.2bn-1.4bn.
Nigel Terrington, chief executive at Paragon Banking Group, said: “We delivered a strong operating performance for Q1. Our digitalisation activities continue apace and we have seen further progress with Spring, our new savings app, with balances now in excess of £800m.
“Lending volumes and pipelines across our businesses are robust and we are well-placed to continue building on our long-term track record of delivery as we reiterate our 2026 full-year guidance.”
