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Mortgage Group Paragon To Resume Buy-To-Let Lending

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http://uk.reuters.com/article/idUKTRE68R10520100928

Mortgage specialist Paragon (PARA.L) will resume lending to buy-to-let landlords, saying it had secured fresh funds and pointing to strong demand for rental properties and an improvement in its loan book.

Paragon, which specialised in lending to professional landlords before higher funding costs forced it to close its doors in early 2008, said it would resume buy-to-let mortgages after obtaining a 200 million pound senior secured loan facility.

The facility, to be rated by Fitch Ratings and provided by Macquarie Bank, will be available for a four year term to Paragon Fourth Funding Limited, and interest will be charged on the amount drawn at one month LIBOR plus 2.875 percent.

Paragon said on Tuesday that during the eleven months of its financial year to end-August 2010, 231.1 million pounds of its buy-to-let loan book had been redeemed.

It added that the new revolving facility provides the basis for the origination of new buy-to-let loans and a return to balance sheet growth.

"Demand from tenants for rental properties in the UK has been strong and is expected to remain buoyant going forward," the company said in a statement.

Excellent news for those who view BTL as your pension.

Although it sounds like it will be very expensive to borrow from them, what's Libor at the moment?

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So, how many BTLs can you buy for £200million?

nothing about deposits in the article or what happens to investors and the loans at the 4 year term.

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No tax/restrictions to curb BTL = No house price crash!

what..49,000 completions A MONTH v a rogue lender with 200 million...thats what...1300 flats..over 4 years?

woe is me!

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what..49,000 completions A MONTH v a rogue lender with 200 million...thats what...1300 flats..over 4 years?

woe is me!

I'm already quaking in my boots.

edit: :lol:

Edited by Pindar

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Although it sounds like it will be very expensive to borrow from them, what's Libor at the moment?

The prices people seem to be prepared to pay in rent ... I'm sure BTL scum couldn't give a monkey's what the difference between LIBOR and the rate they are charged is.

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The prices people seem to be prepared to pay in rent ... I'm sure BTL scum couldn't give a monkey's what the difference between LIBOR and the rate they are charged is.

asking rents...quite different from rent acheived...ask anyone on LLL

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Buy To Let.

Buy Me A Council House,more like.

Well thats it isnt it. The country/government/councils cannot afford to do that for everyone can they. So it will fall on individuals to do it for others by means of BTL. Of course BTL will emerge again once the financial fundamentals are more clear, because its obvious to most that in order to supply the homes needed, its a good idea to get someone else apart from the taxpayer to do it for free.

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Seems the 200 million is revolving credit if Paragon can securitise the loans once made.

http://www.mortgageintroducer.com/mortgages/238555/238/Buy-to-let/Paragon_confident_it_will_securitise.htm

http://www.mortgageintroducer.com/ccstory/238553/238/Paragon_returns_to_new_lending.htm

Products include a 2-year fixed rate at 5.3% with a 2% fee up to 65% LTV

2-year fixed rate at 5.5% with a 2.2% fee up to 75% LTV.

It also has four tracker deals available;

2-year 4.3% (Libor + 3.5%) with a 2% fee up to 65% LTV;

2-year 4.8% (Libor + 4%) tracker with a 2.25% fee up to 75% LTV

5-year 4.55% (Libor + 3.75%) tracker deal with a 2% fee up to 65% LTV

5-year 5.05% (Libor + 4.25%) deal with a 2.25% up to 75% LTV.

Paragon says it will offer professional landlords facilities that are not widely available elsewhere, such as limited companies, multi-unit blocks and Houses of Multiple Occupation.

Edited by fixed

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I do. And I am head of risk.

Maybe you could give me a signature in exchange for the check? If its not too much trouble?

Would it be ok if we asked for even a few repayments just you know, to keep our jobs.

Edited by fixed

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Seems the 200 million is revolving credit if Paragon can securitise the loans once made.

http://www.mortgageintroducer.com/mortgages/238555/238/Buy-to-let/Paragon_confident_it_will_securitise.htm

http://www.mortgageintroducer.com/ccstory/238553/238/Paragon_returns_to_new_lending.htm

Products include a 2-year fixed rate at 5.3% with a 2% fee up to 65% LTV

2-year fixed rate at 5.5% with a 2.2% fee up to 75% LTV.

It also has four tracker deals available;

2-year 4.3% (Libor + 3.5%) with a 2% fee up to 65% LTV;

2-year 4.8% (Libor + 4%) tracker with a 2.25% fee up to 75% LTV

5-year 4.55% (Libor + 3.75%) tracker deal with a 2% fee up to 65% LTV

5-year 5.05% (Libor + 4.25%) deal with a 2.25% up to 75% LTV.

Paragon says it will offer professional landlords facilities that are not widely available elsewhere, such as limited companies, multi-unit blocks and Houses of Multiple Occupation.

It's only revolving for as long as Mac stay in business......

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I do. And I am head of risk.

Maybe you could give me a signature in exchange for the check? If its not too much trouble?

Would it be ok if we asked for even a few repayments just you know, to keep our jobs.

Would two repayments and a fake signature get a deal? ;-)

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what..49,000 completions A MONTH v a rogue lender with 200 million...thats what...1300 flats..over 4 years?

woe is me!

You may laugh, but there'll be no HPC whilst BTL landlords are still able to hold on to or add to their property stock.

A jump in interest rates would have forced many of their hands, but even this is looking unlikely.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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