This compares to underlying profit of £120m in 2020.

It adds that mortgage lending advances increased by 29.4% to £1.63bn, with a year-end buy-to-let (BTL) pipeline of £1.01bn, which compares to a BTL pipeline of £868m the year previous.

Meanwhile, Paragon’s BTL lending to landlords grew by 33.9% to £1.61bn, with 97% of its BTL lending being classed as specialist, “reflecting the company’s increased focus on this area of the market.”

Net mortgage lending rose 7.9% to £11.4bn.

In its yearly report, chief executive Nigel Terrington says: “We have delivered an outstanding performance in 2021, which is testament to the strength of our operating model, the quality of our customer base and the capability and adaptability of our people.

“Every lending business in the Group has this year made excellent progress, and at over £2.6bn [mortgage lending and commercial lending], aggregate new lending now comfortably exceeds pre-pandemic levels.

“These results validate our longstanding strategy to concentrate on specialist lending markets where we can add value for our customers with complex requirements.”

And director of mortgages Richard Rowntree adds: “We enjoyed a very strong 2021 thanks to our landlord customers expanding their portfolios to meet record levels of tenant demand. Our BTL completions were up significantly on the previous year, bringing much-needed new housing into the private rented sector.

“A key highlight for me during the year was the launch of our green proposition. Upgrading the energy efficiency of the private rented sector will be a difficult challenge, but one Paragon is committed to playing a role in.

“We will continue to innovate in this space to help our customers invest in more energy efficient homes, as well as upgrade existing stock.”