Paragon re-enters buy-to-let market, posts profit rise

Paragon, the specialist lending company has seen pre-tax profits rise to £80.8m in the twelve months to the end of September, a gain of 12.5% on the prior year figure of £71.8m.

Final dividend was lifted to 2.65p from 2.40p, giving a full year dividend of 4p per share (2010 3.6p).

Paragon is split into two divisions, First Mortgages, which includes buy-to-let and owner-occupied mortgages and Consumer Finance which includes secured lending, retail finance and unsecured loan books.

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First Mortgages contributed £67.3m in profits, Consumer Finance chipped in £13.8m - down from the £15.5m figure of 2010.

One of the most interesting parts of today's statement is that Paragon has re-entered the origination market for buy-to-let mortgages, lending £127m in the last 12 months.

Commenting on the results, Nigel Terrington, chief executive of Paragon, said:

"...we have successfully reestablished our buy-to-let new lending business and completed a securitisation of buy-to-let assets originated during the year, our first since 2007. This augurs well for a strong start to 2012."

Shares in Paragon had risen 2.51% to 171.2p by 10.11AM.

BS