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MAY 22, 2015 | BY A & S Property

Paragon doubles business pipeline

Paragon Mortgages has enjoyed a successful year, increasing its mortgage pipeline by 101% in the 12 months to 31 March.

New lending hit £446 million in the first six months of the year, a rise of 66% year-on-year.

The group also reported a 10.4% increase in underlying profits for the first six months at £63.9 million, up from £57.9 million in 2014.

The pipeline of applications indicates further strong growth ahead and at 31 March stood at £701.4 million, against £348.1 million one year earlier.

John Heron, director of Paragon Mortgages, said: “It has been a fantastic start to the year for our mortgage business and we are very well-placed for the months ahead.

“We have seen a marked increase in our application levels as a result of Paragon delivering a broader and more competitive proposition to the buy-to-let market.

“This has been fuelled by the success of our strategy to expand and diversify our funding capability.

“Our latest mortgage securitisation tapped into the Euro market for the first time since the crisis, which provides the Group with access to a much deeper investor base than is available in sterling alone.”

The group has also launched Paragon Bank, which has given it access to the retail savings market.

Heron said: “This has helped deliver improved products across the loan-to-value spectrum, a much stronger longer-term fixed rate proposition and the re-launch of Paragon buy-to-let lending in Scotland.

“Overall, this has allowed us to present a much more comprehensive proposition to our intermediary partners where we have relationships going back some 30 years.

“The intermediary market has responded well to this and we have seen a marked increase in application flows which has started to drive higher levels of completions.”

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