A leading provider of buy-to-let mortgages believes it will meet its financial targets in 2009 despite the economic downturn.

Paragon Mortgages stated its outlook after figures for the first quarter of its financial year revealed pre-tax profits of £7 million.

The firm said: "Whilst the range of possible outcomes for the current financial year remains wide, the Board currently expects the performance of the group to be comfortably within the current range of analysts' forecasts."

Volatility in the money markets, which contributed to the nationalisation of buy-to-let specialist Bradford &Bingley in September, led to concerns about the future for private landlords' finances amid the economic crisis.

Although repossessions have increased since the credit crunch, a survey by Business Development Research Consultants this week showed that private landlords with 20 properties or more to rent are posting profits.

Low house prices, the use of auctions and sale and rent-back schemes have enabled these landlords to take advantage of the current economic climate, the study found.ADNFCR-2002-ID-19001357-ADNFCR

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