Paragon releases trading update

It reported good growth in buy-to-let lending volumes, expected to be some 30% higher year-on-year, seeing it well funded into 2008.

In addition, it reported overall good credit performance of buy-to-let, whilst the overall credit quality of the group’s assets has seen further year-on-year improvement.

Paragon announced that its share of the buy-to-let market rose to 9.1% during the first-half of the year, maintaining its position as the third largest lender both by balances and origination levels

Its pre-tax profits for the 11 months of the year to the end of August 2007 are also in line with market expectations.

Paragon Mortgages managing director John Heron said: “We are delighted with our performance so far this financial year, particularly the credit quality of our buy-to-let book, which remains exemplary in spite of a series of interest rate rises.”

”Trading activity continues to be strong, boosted by rising levels of tenant demand and the solid returns that buy-to-let landlords are enjoying.”