Paragon make pre-tax profit of £71.8m
Paragon made a pre-tax profit of £71.8m in its last financial year, up from £54.3m in 2009.
The group today announced its preliminary results for the year endingSeptember 30, 2010. The results highlight the progress made by the Group, which this autumn returned to lending in the buy-to-let market.
John Heron, Paragon Mortgages managing director, said: “We have been very encouraged by the initial phase of our return to new lending and have had a great response from both landlord investors and mortgage intermediaries. This underlines the strength of Paragon’s reputation in the buy-to-let market and also the shortage of funding in the sector, particularly for landlords with more complex needs.
“We have managed the roll-out of our distribution network prudently, carefully and successfully to ensure that we could effectively manage business flows and maintain our customer service levels. We are confident that we have comprehensive intermediary coverage and we are working with the larger commercial finance specialist intermediaries, national mortgage advice firms and major regional intermediaries. We also have agreements in place or under development with the majority of major networks.”
Commenting on landlord investor demand, Heron added: “Application flows have been very encouraging and reflect the diversity of propositions in the professional landlord market. Together with applications for regular self-contained properties, landlords also clearly value our criteria for Houses in Multiple Occupation and multi-unit blocks. There is a shortage of lenders with expertise in these more complex buy-to-let cases, but our experience in this area means we can consider a much wider range of properties and look at cases on their individual merits.”