A UK-based company specialising in buy-to-let mortgages revealed today that it is planning to acquire more firms, following a pleasing increase in its quarterly operating profits.

The Daily Telegraph newspaper reported that mortgage lender Paragon had seen its profits increase to £20.3 million, in the final quarter of 2011 – a 12 per cent increase compared to October-December 2010. The company had also revealed that its mortgage portfolio was doing well and was well up to its predicted performance levels.

Last year Paragon acquired a number of companies and company assets, including those in financial institutions RBS and MBNA. In a statement, the group said that it would be looking to make more acquisitions over the next 12 months.

“During the quarter, £37.4 million of new buy-to-let loans were advanced and a further £1.2 million was advanced by way of further advances to existing borrowers,” it revealed.

“At 31 December 2011 the pipeline of new business amounted to £95.1 million. The credit quality of the new lending business written in the period has remained excellent.”

The statement went on to say that “portfolio acquisitions have become an increasingly important part of the group’s activities and Paragon’s track record of loan servicing, risk management and portfolio investment positions it well to exploit similar opportunities as they arise in future.”

The company was one of the first to halt all new lending in 2008 after the credit crunch caused the securitisation markets to stall, but when they became more liquid in September 2010, Paragon re-opened its doors to new customers.

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