Surge in buy-to-let loans dries up pipeline for lender Paragon
Specialist buy-to-let mortgage lender Paragon has recorded a 84.6 per cent increase in loans in the first six months of 2016, to £823.6m.
“We saw a surge in applications from people trying to beat the stamp duty hike and as a result expect the second half to be weaker than usual,” chief executive Nigel Terrington told City PM
Pre-tax profit grew 11 per cent to £69.5m in the six months to 31 March 2016.
A three per cent premium on stamp duty for buy to let investors and those buying second homes was brought in from 1 April this year.
The pipeline at the half year dropped to £350.6m, from £701.4m at 31 March 2015 as a result of changes to the groups criteria and the rush to beat stamp duty changes.
This reduced pipeline is expected to result in lower completion levels in the second half year.