Buy-to-let market boosts Paragon - graduate jobs

Graduates who are interested in working in the mortgage sector, but have been put off by the state of the housing market, will be happy to know that buy-to-let mortgage company Paragon has reported a 32% rise in profits.

The group is looking to re-establish its self as major lender to professional landlords following its withdrawal from the market in February 2008.

Trading as Paragon Mortgages and Mortgage Trust, the company secured £200 million in funding in September and is now writing new loans.

Paragon said the stalling housing market has led to more potential home buyers renting over a longer period of time, which has caused an increase in demand for landlord's rental properties.

At the end of September, the firm's buy-to-let portfolio stood at £8.3 billion, as new lending had previously been restricted to further advances to existing borrowers.

However, it said the credit performance of its mortgages over the year had been "exemplary", with the rate of three-month plus arrears in buy-to-let standing at 0.83%, against the market average of 2.45%.

The resulting 40.5% fall in provisions for bad debt to £39.2 million contributed to a rise in pre-tax profits to £71.8 million from £54.3 million a year earlier.

The company added: "Low interest rates have increased affordability for customers, reducing the incidence of new arrears and assisting the correction of past arrears. The loan books continue to be carefully managed and credit performance remains in line with our expectations."