"Paragon announces latest figures"
Buy to let mortgage specialist Paragon has announced completing new lending of £65.7 million for the second quarter of 2011.
The firm disclosed this is around two-thirds of buy to let completions by Paragon Mortgages since the firm reopened lending books on October 1st last year, after a lengthy absence from the market due to the credit crisis.
Some simple arithmetic to analyse the figures reveals how Paragon stands in the market as one of the most publicly vocal firms speaking out against the proposed European Union mortgage directive that could regulate buy to let lending in the UK.
The last whole-of-the-market buy to let lending figures are for the quarter ending March 31 this year from the Council of Mortgage Lenders (CML).
The CML collates lending figures from all the UK’s biggest bank and building society mortgage lenders – including Paragon.
The figures show that for the first quarter, CML buy to let lenders completed £2.9 billion of mortgages across 27,600 loans – at an average loan value of £105,000.
Taking the Paragon lending of £65.7 million and dividing by the CML average loan amount, the rough indication is Paragon advanced funds on around 638 properties in the second quarter.
If this is around two thirds of their completions, the firm has advanced loans on around 950 properties since October 2010.
John Heron, director of mortgages at the Paragon Group, said: “We had a strong focus on rebuilding our distribution network and brand awareness following our return to the market and it’s pleasing to see that approach start to deliver.
“The fact that two-thirds of completions came in the third quarter of our financial year alone shows our new lending is building strong momentum.”
The lender also confirmed negotiations are underway to release more funds for further lending.