Highlights of the interim results to 31 March 2007 include:
· Total buy-to-let mortgage advances by Paragon Mortgages and Mortgage Trust total £1.93 billion, up 45% on H1 2006
· Total buy-to-let mortgage portfolio up 45% to £8.65 billion
· Buy-to-let arrears remain very low and stable
· Pipeline of new business at the beginning of H2 remains strong
John Heron, director of mortgages at Paragon, said: “The buy-to-let market remains consistently buoyant, with investors actively adding to their portfolios in an environment of high tenant demand and rising rents. Indeed, the Royal Institution of Chartered Surveyors shows tenant demand rising at its fastest pace for nine years. As the only UK lender exclusively catering for the needs of the buy-to-let investors, we have enjoyed a very successful first half year, with new business volumes strongly up for both our Paragon Mortgages and Mortgage Trust brands. With redemption rates remaining low, our total buy-to-let portfolio has grown by almost a half.”
“It is important to note there has been no compromise in terms of risk, and our credit profile remains exemplary.”
The intermediary market remains key to the success of buy-to-let, as John Heron explained: “Intermediaries are crucially important in distributing buy-to-let mortgages and the segment now makes up almost a quarter of their business. For both Paragon Mortgages and Mortgage Trust, the dynamic, mutually beneficial relationships we have with intermediaries are vital to their success and ours.”
