Paragon unveils rise in profits
Paragon, which only returned to the buy-to-let mortgage market
recently, has unveiled a rise in its profits.
The company revealed that profits are up by almost a third,
following its success in securing a £200 million funding
facility at the end of the summer.
It stated: "Low interest rates have increased affordability for
customers, reducing the incidence of new arrears and assisting the
correction of past arrears.
"Credit performance remains in line with our expectations."
Paragon added that buy-to-let landlords are experiencing a high
level of demand at the moment.
The firm explained that this is because the state of the housing
market currently means more people are looking to rent a home
rather than buying.
This comes after the latest release of the Rent Index showed a rise
in rental costs of 1.63 per cent for buy
to let properties.
It revealed the average cost is now £600 per month, which is
1.48 per cent up on a year ago.