Paragon, the buy-to-let mortgage specialist has said it is ready to resume lending to new customers following its withdrawal from the market two years ago.
IntroducerToday.co.uk – 25 November 2009
The Solihull-based lender was forced to launch an emergency GBP 287m rights issue to avert receivership in January last year. The collapse in the securitisation markets left it without funds to offer mortgages at competitive rates.
Since last year, Paragon pulled back the breadth of its lending to existing mortgage holders and reduced lending from its consumer finance arm.
Nigel Terrington, chief executive, said the past six months had seen “significant improvements” in the wholesale funding markets.
The buy-to-let market has seen lending and competition dwindle with lenders Bradford & Bingley and Northern Rock exit the market.
Terrington said the recent improvements “will encourage us to look more confidently to reinstating the funding programme to support new lending”.
Great news. At last we all have a chance of picking up some of those fabulous bargains that are currently available.
Comment by Norfolk N' Chance — 25/11/2009 #
They have had a good year considering the economy. They saw a 6.7% increase in business from Q3 to Q4 2009. Indeed a lot of mortgage brokers are positive about the future with about 55% confident that business will continue to improve in Q4
Comment by BMV Property — 22/12/2009 #