The buy-to-let market is still booming for specialist lender Paragon with loans to landlords jumping 40% in the past year, the firm said today.
Paragon has advanced £136.4 million in buy-to-let loans in the nine months to June — well ahead of the £95.5 million lent at this stage last year — and has another £121.3 million in new business in the pipeline.
Chief executive Nigel Terrington said: “Year on year, the buy-to-let mortgage market overall is showing growth of 30%. It’s down to demographics and social change as well as the banks’ unwillingness to lend to first-time buyers.”
Profits have also been boosted by portfolios of loans snapped up from banks looking to shrink their balance sheets. Operating profits rose £10 million to £68.9 million for the nine months.
Terrington added: “There are around £95 billion in consumer and mortgage loans that we think will be eventually be sold by the banks.”
