Paragon grows development finance lending as pipeline rises 31%

Paragon Bank’s Development Finance business increased new lending by 3% in its latest financial year, the company announced today.

Unveiling its full-year results for the year to 30 September 2025, Paragon recorded £527.2 million of new lending, up from £511.9 million at the same point the previous year.

The Development Finance loan book ended the period at £960.4 million, 8.6% higher than the previous year. Paragon also recorded strong Development Finance pipeline growth, ending the period 31% higher at £264.1 million.

A significant proportion of these balances, particularly those related to projects which have already started, are expected to be drawn in the early part of the coming financial year, providing a strong base for our lending performance in 2026.

Neal Moy, Paragon Bank Development Finance Managing Director, said:

“To record lending growth in a slow market is very pleasing and testament to the quality of our team and proposition, as well as our diversification strategy.

Developers appreciate our flexible and tailored approach, in addition to the certainty of working with a lender with a track record of commitment to the sector and the financial strength to power their schemes.”

Paragon also announced an extension of the Development Finance Green Homes Initiative by a further £100 million, taking the scheme to £400 million.

New lending facilities for the scheme, which rewards energy-efficiency while providing financial benefits to customers, stood at £295 million by the end of the financial year.

Overall lending across Paragon Banking Group stood at £2.68 billion, with Commercial Lending operations – including SME Lending and Development Finance – contributing £1.19 billion and Mortgages £1.49 billion.

The Group’s net loan book grew 4% to £16.3 billion and operating profit increased by 0.4% to £293.9 million.

FOLLOW ON GOOGLE NEWS