Another lender in trouble? Paragon BTL

mystic_trev

Shares are down 40% in early trade. I believe they're having problems securing funding.:rolleyes:

harryhound

The market is looking for the next Northern Wreck - both these companies have had their shares suspended temporarily according to the BBC; in order to avoid a "false" market.

Would you be wanting to be holding their paper?

Dan_Collins_2

Paragon have been struggling for a month of so, just hitting the news. We shall see more specialist lenders in this position. A large number of these companies are backed or ownded by large US finance houses some will servive and some will not.

I feel for packagers they are like a broker for brokers in the sub prime world and a large number of them have seen business drop!

sarkin

Now down 47% and the Rock down 30%, bad day at the office for some.

sarkin

I think Paragon are a BTL lender not a packager

Jonbvn

Details:
http://www.telegraph.co.uk/money/main.jhtml;jsessionid=HBNU1PP5FLFG1QFIQMGCFFOAVCBQUIV0?xml=/money/2007/11/20/bcnpara220.xml

BTW, they are a BTL specialist.

Dan_Collins_2

sarkin wrote: »

I think Paragon are a BTL lender not a packager

I was stating that I would be more conserned as a packager than a lender, Paragon are a specialist BTL lender.

sarkin

Yeah i reckon a lot of packagers are going to hit the wall. Which means a lot of home owners will not be able to remortgage. I stoped advertising for sub prime in October. All the leads where so far in the sh*t a couple of months before we could have remortgaged them. But not now and if we can get a mortgage the rates are so high they cant afford them any way. looks like BTL could go the same way if lenders cant securitise or LIBOR stays as high.

dwsjarcmcd

Not just Paragon, Bradford & Bingley have sold 8% of their book to raise funds. This has got a long way to go!

EdInvestor

B&B (one of the biggest BTL lenders) were thought to have enough in the kitty even before this sale to go through to next spring, so this gives an extra safety cushion.Shares up strongly today.

[Deleted User]

Here spells the end of teh buy to let idiots game. Lots of people will go bankrupt.

A good bet would be going short on paragon as teh hedge funds will kill its SP.