It says this growth is due to strong demand from portfolio landlords. In total it completed £854.6m of BTL loans in the six months to 31 March 2022, the overwhelming majority of which (98.2%) were classified as specialist BTL loans.
Paragon says it has also seen a strong increase in green mortgage completions over this period. Like other lenders, Paragon has launched its own green product range offering rate discounts on properties with higher energy performance certificate (EPC) ratings.
The ban said it have completed £353m loans for properties with an EPC of between A and C . This is a 38.4% increase on 2021.
In total, Paragon reported that the pipeline for new BTL business ended the period 44.4% higher than last year, at £1.34bn. Meanwhile the mortgage loan book ended the period at £12bn, compared to £11.13bn the year before.
Total lending across the Paragon Banking Group’s divisions increased by 32.2% compared to the same period last year, while pre-tax profits at the company increased by 49% to £143.6m.
Paragon Bank managing director of mortgages Richard Rowntree says: “Portfolio landlords demonstrated a strong desire to acquire additional property during this period helping underpin the private rented sector at a time of record tenant demand.”
He adds: “I am pleased to see landlords starting to prepare for expected changes to minimum energy performance standards in the private rented sector, with growth in lending on EPC A to C properties. This will be a big focus for the industry as we move towards a net zero future.”