Buy to let firm 'in strong financial position'

25 November 2009

Written by Steve Olejnik

The parent company of buy to let mortgage provider Paragon Mortgages has reported healthy annual financial results for the year ending September 30th 2009.

Paragon Group of Companies also revealed that its services to the private rented sector continued to grow.

Some of the headline figures announced by the firm indicated that profit before tax for the 12-month period was £54.3 million - up £0.6 million on 2008 - and low redemption rates.

Its arrears performance was said to be "strong" and better than the industry average.

Commenting on the wider buy to let market, Paragon Mortgages' managing director John Heron said: "Landlords are reporting strong levels of tenant demand and a recent report from the Royal Institution of Chartered Surveyors confirmed that buyer enquiries from buy to let investors are increasing."

However, he also indicated that there are still some issues regarding mortgage supply.

Last month, Paragon Mortgages published research showing that landlords expect an average increase in portfolios of over 0.8 per cent in the coming 12 months.

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