Paragon Bank recorded a 25% increase in new buy-to-let lending in the first half of its financial year on the back of growing landlord demand, the company announced today.
Unveiling Half Year results for the six months to 31 March 2025, Paragon recorded £812.2 million in new buy-to-let loans, up from £649.3 million for the same period last year.
Paragon’s Mortgage loan book finished the period 4.5% higher at £13.7 billion, with buy-to-let comprising the overwhelming majority of the book.
The Half Year saw the full roll-out of Paragon’s new buy-to-let mortgage originations platform, delivering a faster, smarter and more flexible application experience for brokers.
The launch of the platform improves application screening, supports earlier decision making and is expected to deliver a higher conversion rate.
Paragon Bank Managing Director of Mortgages, Louisa Sedgwick, said: “A 25% increase in new lending shows the underlying strength of demand in the buy-to-let market. There remains an acute mismatch between supply and demand in the rental market and landlords are responding.”
She added: “We were delighted to launch our new mortgage originations platform during the period, and we have enjoyed a fantastic response from our intermediary partners. This system is already delivering tangible benefits; our pipeline is now a more accurate reflection of future business as we are able to screen applications more effectively and efficiently and give brokers earlier decisions.”
The annualised redemption rate on the buy-to-let book remained low at 7.1% and arrears modest at 0.51%, below the broader buy-to-let market figure of 0.85%. The loan-to-value coverage of the buy-to-let book remains unchanged at 62.8%.
Overall, Paragon reported a 5.2% growth in pre-provision profits and a 2.1% increase in underlying profits, the latter rising to £149.4 million. The loan book rose 4.9% to £16 billion, with lending up 11.4% to £1.38 billion, including loan growth in the Development Finance and SME Lending business lines.
Commenting on the Group’s results, Paragon Banking Group Chief Executive Officer, Nigel Terrington, said: “We delivered another strong financial and operational performance in the first half of 2025, reflecting our disciplined approach and consistent track record of execution. With strong momentum and a resilient business model, we are well placed to navigate the evolving external environment and remain optimistic about the remainder of the financial year and beyond.”
