Paragon to Return to Buy to Let Mortgage Market

Paragon, a British finance firm specialising in provision of residential mortgages to professional landlords, announced its plans to get back on the buy to let market, which it left because of the economic downturn.

Before the credit crunch hit the UK mortgage market in 2007, Paragon was one of the leading lenders. Now it plans to resume lending to buy to let landlords as it has secured fresh funds and sees increased demand for rental properties on the market.

In its note to the stock market, published on September 28th, the Paragon Group of Companies said that the demand for buy to let properties from tenants has been strong in the past months and is expected to either stay the same or grow.

It is interesting to note that the decision of Paragon to increase lending to buy to let landlords comes at odds with the latest figures from the Bank of England (BoE), Council of Mortgage Lenders (CML) and British Bankers Association (BBA), all of which suggest that the number of approved loans dropped.