Specialist lender Paragon reports strong mortgage and commercial lending growth despite housing market slowdown

Specialist lender Paragon reported a first-half profit boost with soaring commercial and mortgage lending volumes in the face of Brexit uncertainty.

The bank reported an underlying profits boost of 8.7 per cent to £79.8m in the six months to the end of March.

Read more: Paragon boosts lending in buy-to-let and commercial divisions

Lending volumes grew by 30 per cent to £1.29bn after strong performance in its mortgage and commercial lending divisions.

“This was achieved despite maintaining cautious liquidity levels in the face of Brexit-related market uncertainties,” the company said.

Despite a slowdown in the UK housing market, mortgage lenders such as Paragon, One Savings Bank and Charter Court have all reported loan book growth in recent months.

Goodbody analyst John Cronin said the trio’s results and Paragon’s positive outlook “reinforces the message these specialist lenders can continue to enjoy strong loan growth despite the relatively subdued macroeconomic backdrop.”

Paragon said professional landlords were largely undeterred by Brexit-related uncertainty, supporting growth in the sector.

Read more: One Savings Bank and Charter Court both boost loan books ahead of merger

“Despite the political uncertainties, professional landlords are carrying on with their businesses and continuing to develop and expand their portfolios,” the company said in its outlook.

Chief executive Nigel Terrington said: “Professional landlords are becoming the backbone of the UK private rented sector, where we are well placed to address their complex needs.”