One of Britain’s biggest buy-to-let mortgage lenders, Paragon, has just announced a massive profit jump, leaving investors beaming and landlords happy.

They made a whopping £110.6 million in the first half of the year, more than double what they made last year! This comes despite the fact that fewer people are taking out new mortgages, as higher interest rates make it tougher to borrow.

Buyback Bonanza!

Paragon is giving some of that extra cash back to its shareholders by increasing its share buyback program. They’re now buying back a total of £100 million worth of shares, which is great news for those who own shares in the company.

Strong Performance Despite Tough Times

So how did they do so well when fewer people are buying property? Paragon’s “net interest margin” – basically the difference between the money they make on loans and the interest they pay on deposits – has gone up. This means they’re making more money from their existing loans.

Big Loans for Big Projects

Paragon isn’t just about buy-to-let mortgages. They also lend money to businesses, particularly medium-sized housebuilders, which are building new homes.

Buy-to-Let Market Still Strong?

While the buy-to-let market has seen fewer new loans recently due to high interest rates, Paragon is confident that things are looking up. They believe they will make more money from buy-to-let and commercial lending in the rest of the year.

Landlords Still Feeling the Pressure

The fact that fewer people are taking out new buy-to-let mortgages shows that some landlords are finding it harder to manage their properties, especially with the cost of living going up. This is making some landlords put their properties up for sale or charge higher rents.

Paragon is Prepared

Paragon has already set aside more money to cover potential losses from landlords struggling to pay back their mortgages, but they are still confident about the future. They have plenty of money in their savings accounts to keep things running smoothly.

Analysts Love Paragon

Financial experts are impressed with Paragon’s performance. They say Paragon is a well-run company with a solid track record, which explains why their share price has gone up by almost 60% since December!