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Paragon returns to BTL mortgage market, with new Securitised Mortgage Funding.
HAMISH_MCTAVISH
Posts: 28,592 Forumite
For those that don't know, Paragon was one of the bigger specialist BTL lenders that withdrew from new lending after the global credit crisis ended the ability to raise money from the wholesale markets through Mortgage Backed Securities.
However it's loan book has remained healthy throughout, with low arrears and default rates.
It is now returning to new lending, after 6 months of rumours that it had been able to secure funding through an international bank and new securitised mortgage funding being acceptable to the markets.
BTL, far from being dead, is being given a new lease of life. As it seems, is the wholesale funding model for mortgages.
If this continues, and spreads, it will be very bad news for the bears.....
However it's loan book has remained healthy throughout, with low arrears and default rates.
It is now returning to new lending, after 6 months of rumours that it had been able to secure funding through an international bank and new securitised mortgage funding being acceptable to the markets.
BTL, far from being dead, is being given a new lease of life. As it seems, is the wholesale funding model for mortgages.
If this continues, and spreads, it will be very bad news for the bears.....
http://www.mortgagestrategy.co.uk/lenders/paragon-returns-to-lending/1019211.articleParagon Mortgages is returning to new lending this morning and is launching a new range of buy-to-let products targeted at professional landlord investors.
The lender aims to widen choice and competition in the buy-to-let mortgage sector.
Paragon will commence lending with immediate effect through a panel of brokers and will widen this distribution over the next few weeks.
The number of accounts more than three months in arrears across Paragon’s portfolio of buy-to-let assets has continued to fall and is currently just 0.86% of the book.
John Heron, Paragon Group’s director of mortgages, says: “We are really excited about our return to new lending. The market is still fairly subdued and the road back to a ‘normal’ market is going to be a long one, but we are back in the race and we will do our level best to make sure that we expand the choices available in buy-to-let finance for landlords and intermediaries.
“Access to buy-to-let mortgage finance is still a major issue for residential property investors, and particularly professional investors who may exceed lenders’ aggregate lending limits or who find that their more complex or unique finance requirements cannot be met by the standard buy-to-let lenders.
“Competition is vital for a healthy and vibrant buy-to-let market, and we aim to provide that competition.
Supply of private rented sector property is already under severe strain, which is leading to rental inflation. It will be professional landlords that stimulate the growth of the sector, and we want to be there to help them achieve this.”
Paragon has arranged funding via a new warehouse facility and will resume mortgage origination with immediate effect.
These will be the first new buy-to-let mortgages that Paragon has offered since February 2008 when it withdrew from the market due to conditions in the global financial markets.
Macquarie Bank is providing the £200 million warehouse facility.
The facility’s revolving nature will mean it can be used repeatedly to pre-fund Paragon’s future securitisation deals, giving it a sustainable and secure funding platform.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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Hmm, they must have quite good credit checks or whatever in place to have such a good arrears rate.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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You'd think so.
Although soaring rents and cheap mortgage funding have obviously helped.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
'The number of accounts more than three months in arrears across Paragon’s portfolio of buy-to-let assets has continued to fall and is currently just 0.86% of the book.'
What happened to all those 'btl numpty amateurs' that were going to fall off a cliff?
As ever the bears have heads buried in academia and theory whilst the rest of us just do stuff in the real world and sure enough all turns out well.0 -
HAMISH - wanted to get your opinion on the comments by a leading hedge fun guy interviewed on BBC news channels Hard Talk show.
He said the next 20 years would see no increase in share or house values and that 80% of hedge funds would dissapear and that it's better to be a dentist or engineer now as apposed to a city trader.
My own view is he has to be wrong because in the end Humans seek out investment returns from shares and property and it is still the case many a target investment will yield a satisfactory investment return and as such those underlying assets will attract increasing value.0 -
As for Paragon they went bankrupt in the previous one. In this one they were very close too it anfd likely to still go that way. Remember they do not hold public savings so the govornment has no need to buy their dodgy mortgage book off them. There clients are only being held together by 0.5% interest rates which will be going up. On top of that buy to let has the greatest risk of repossesions than any other.
Paragon is toast.
Oh dear.....
Poor Brit.
It just gets worse for you by the day, doesn't it?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
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the secret society is looking after themselves to ensure that they're ok by lowering interest raes and engineering house prices... and the poor have nots will be left behind...Graham_Devon wrote: »Interest rates and engineering of property prices.
engineering of property prices?? hahaha, had to laugh at that one...
desperate times require desperate sound bites. don't they Devon...0 -
desperate times require desperate sound bites. don't they Devon...
https://forums.moneysavingexpert.com/discussion/2755568
Please see Hamish's thread.
Apology accepted
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apology for what you not understanding - i don't think so...Graham_Devon wrote: »https://forums.moneysavingexpert.com/discussion/2755568
Please see Hamish's thread.
Apology accepted
this is what makes me have sympathy for you.
you get things completely wrong so easily and so frequently!!
keep it up0
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