Pre-tax profits rose 18% to £95.5m up from £80.8m in 2011.

The results reflect the developments over the last 12 months, including re-establishing the buy-to-let origination franchise, the signing of two warehouse facilities and two securitisations since the credit crunch, said Paragon.

To September 2012, Paragon advanced £184.3m against £127m in 2011. Following the last securitisation, total warehouse funding facilities have increased to £450m.

John Heron, managing director of Paragon Mortgages, said: “Buy-to-let is the only area of the mortgage market that is growing at a healthy and sustainable level. We have a strong capital base and are well-funded which gives us a platform on which to grow our buy-to-let lending through our Paragon Mortgages and Mortgage Trust brands.”

Heron explained the difference in coupon pricing from 275 basis points for the first securitisation to 135 basis points for the second.

Heron said: “This says something positive about Paragon, which has been successfully issuing transactions since 1987. These have been buy-to-let-only transactions, which no other lenders have achieved and the prospects for the markets have been easing.”

On growth prospects for lending, Heron said: “What you can see is that our warehouse facility now is £450m, up from £200m before. That’s an excellent platform.”