Paragon Bank has reported a 3.4% increase in its mortgages loan book, which rose to £13.9bn for the year to 30 September 2025, up from £13.4bn a year earlier.
The bank said the growth reflects strong customer retention levels alongside continued demand for buy-to-let lending.
Annual redemptions on the loan book stood at 7% and new buy-to-let lending reached £1.49bn, broadly consistent with the previous year.
Paragon highlighted that £782.3m of this lending was on properties with an EPC rating of A to C.
The bank also introduced a new mortgages originations platform during the period, which it said has delivered higher conversion rates, better application screening and quicker decisions.
Paragon reported reduced application-to-offer times and cases progressing through the pipeline more efficiently.
As a result, the buy-to-let pipeline fell to £820.9m compared with the previous year, although this was ahead of the £662.2m recorded at the half-year point in March.
Louisa Sedgwick, Paragon Bank managing director of mortgages, said: “This is a strong set of results in challenging market conditions, and we are pleased to have supported thousands of landlords to provide much-needed new homes in the private rented sector.”
She added: “The launch of our mortgages origination platform was a significant milestone in the financial year and broker feedback has been overwhelmingly positive.
“The new system has improved our agility to bring new products and processes to market more quickly, which you can see through initiatives such as our multi-property product and our streamlined process for landlords with 15 properties or fewer.
“It also enables us to work with a cleaner pipeline for two reasons. First, we make quicker decisions on applications and, second, we are moving cases through the pipeline more quickly.”
Paragon said credit quality within the mortgages loan book remained strong. Three-month arrears were stable at 0.52% and loan-to-value cover stood at 63.2%.
Across the wider Paragon Banking Group, total lending reached £2.68bn, with commercial lending – including SME lending and development finance – contributing £1.19bn.
The Group’s net loan book grew 4% to £16.3bn and operating profit increased 0.4% to £293.9m.
