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Paragon returns to BTL mortgage market, with new Securitised Mortgage Funding.
Comments
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Nothing much to see here, £200 million is less than 1900 flats over 4 years, add the fees and the IR's and it's like a pi$$ in the wind. In fact I'd go as far to say that Hamish's OP headline will make a bigger difference to the sentiment of BTL than this.
Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
chucknorris wrote: »A few weeks ago we were looking at btl rates, it didn't take us long to realize that remortgaging our own (unmortgaged) house was the much better option, to take advantage of the better rates on offer.
I can see why. Half the rate, or more!...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Nothing much to see here, £200 million is less than 1900 flats over 4 years, add the fees and the IR's and it's like a pi$$ in the wind. In fact I'd go as far to say that Hamish's OP headline will make a bigger difference to the sentiment of BTL than this.
A good quip but from what I read they plan to lend a lot more than that, via a securitisation merry-go-round.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
A good quip but from what I read they plan to lend a lot more than that, via a securitisation merry-go-round.
BTL flourished in the last decade on a magic carpet of lax lending, cheap credit, low fees and 100% ponzi mortgages, all this has gone. BTL on any meaningful scale is dead, what Paragon are wanting to do is pick over the tiny good bits of the carcass.Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
Oh, we changed topic. Umm, yes?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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Oh, we changed topic. Umm, yes?
Not really, just commenting on the back drop of the market that they are hoping to put their £200 million into. Those rates and fees are prohibitive.Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
not really - the Mortgage Works who are part of the Nationwide, have had similar rates and fees for the last 24 months. they're still been getting business through the door.Not really, just commenting on the back drop of the market that they are hoping to put their £200 million into. Those rates and fees are prohibitive.
if there was not demand for BTL, Paragon wouldn't have got back into the market.
i have to say the criteria for these loans is very, very strict.
this is what it is - additional lending in the BTL market. there will be more funding too as more lenders will want this new business.0 -
there will be more funding too as more lenders will want this new business.
My guess is we've now seen the worst of the restrictive lending. As more lenders compete for business the criteria will get easier. If you look at the BTL mortgages on offer the rates aren't bad but you get stung on the fees. I expect this to start getting a bit better as time goes on.0 -
Nothing much to see here, £200 million is less than 1900 flats over 4 years, add the fees and the IR's and it's like a pi$$ in the wind. In fact I'd go as far to say that Hamish's OP headline will make a bigger difference to the sentiment of BTL than this.
You really didn't read the OP, did you?
It ain't 200 million....
It's a revolving 200 million facility and they'll be securitising off the loans.“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 -
Originally Posted by brit1234
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.HAMISH_MCTAVISH wrote: »Oh dear.....
Poor Brit.
It just gets worse for you by the day, doesn't it?
I still believe they are toast. Prices are falling and housing benefit is going to be cut. Paragon have been saying they were coming back month after month for ages now. It is not a good model and as we enter a double dip they are likely to go down. LLOYDS the biggest buy to let provider is now actively reducing its exposure, if buy to let is so healthy why are they doing this?:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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