Paragon is creating up to 70 new jobs in Solihull as it expands buy-to-let lending, reopens its consumer finance arm and takes on the management of loans for other banks.

The firm, which specialises in buy-to-let mortgages, last week announced a 34.8 per cent increase in pretax profits to £39.5 million.

It said the new jobs came as a result of expansion across several areas of its business.

Nigel Terrington, chief executive of Paragon, said: “Our new lending business is expanding at present. “We are expecting a substantial increase in new lending in the second half of this year and future years.”

He added that the firm was also looking to re-enter the consumer finance market, which it retreated from during the recession.

“Now we’ve found a lot of competition has either gone away or it’s not as competitive as it once was so it provides an interesting growth opportunity for us,” he said.

The final area of expansion is in the servicing of loans for other firms.

Mr Terrington said: “Because of our expertise in loan management, other banks and financial institutions have asked us to look after their loans because they think we can do a good job.

“We are just about to take on the management of 50,000 consumer loan accounts on behalf of another loan organisation.”