The full-year results revealed an increased focus on specialist BTL lending in the year to 30 September, which comprised 98% of the company’s new mortgage originations. 

Green lending, which includes loans on properties with an energy performance certificate (EPC) rating of A to C, went up sharply during the same period. 

During the year, Paragon lent £832.2m on A to C-rated properties, an increase of 44% compared to the same period last year. 

Operating profit before fair value items at Paragon Bank rose by 16.4% to £226m.

The BTL new business pipeline reached a record £1.26bn at the year-end, which is 24.6% higher than the year prior. 

Arrears across the BTL mortgage book reduced during the year to 0.15%, down from 0.21%. 

The lender says the low arrears figure “reflects the strength” of its loan book. 

Paragon Bank managing director of mortgages Richard Rowntree says: “This was a strong performance from the mortgage division, reflecting our specialist approach and focus on professional landlords.”

“I was particularly pleased to see strong growth in lending against properties with an EPC rating of between A-C; it’s important that the UK housing stock is upgraded as the UK transitions towards net zero by 2050.”