Hugh Fairclough, partner and head of financial services at RSM UK, comments on Paragon’s full year results: “Paragon’s strong trading performance, driven by mortgage lending, suggests there’s still plenty of life in the buy-to-let market. Despite persistent reports of landlords selling up in the face of rising costs caused by the increasing regulatory burden, recent high interest rates and the changes to come in the Renters’ Rights Bill, this continues to be a real area of strength for Paragon.

“However, the resilience of the buy to let market will be tested following the Chancellor’s announcement in the budget of a rise in property income tax and the surcharge on high value properties. With many landlords expected to pass on the extra costs to tenants, this will only add additional strain on the rental market.

“Paragon’s partnership with Moneyhub earlier this year to support its new digital savings app, Spring, has also helped drive growth. The move was pivotal in allowing Paragon to extend it capabilities outside of lending, and provide an alternative product to the traditional bank account. Its focus on seamless integration along with creating a user-friendly experience, makes it a firm contender to high street providers and it’s been well received by customers so far.”

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