John Heron, Paragon Mortgages' managing director, says:
"In another turbulent year for the UK economy, banking sector and mortgage market, the Paragon Group has performed well and is on a strong financial footing. Pre-tax profits have increased, arrears have fallen during the year and redemptions are at historically low levels.
"We continue to explore all avenues to secure funding to enable the Group to resume new lending and, whilst these are still early days, we have been encouraged by recent developments in the securitisation markets.
Landlords are reporting strong levels of tenant demand and a recent report from the Royal Institution of Chartered Surveyors confirmed that buyer enquiries from buyto-let investors are increasing. However, mortgage supply remains an issue.'
Heron added: "Whilst recovery from the recession is likely to be slow, with employment levels likely to rise further and expected house price volatility, the Group has strong foundations to underpin future growth.
We continue to develop our ancillary range of products for landlords, letting agents and brokers, including landlord insurance, tenant assessments and energy performance certificates, and are well placed to return to new lending once funding markets return to normality."
