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Going, going.....

http://www.mortgageintroducer.com/mortgage...93_jobs_cut.htm

Paragon Group consolidation sees 93 jobs cut

10 March, 2008

Paragon Group has announced the expected loss of around 15 per cent of its workforce following a business restructure.

The Group is to consolidate Paragon Mortgages and Mortgage Trust as part of a business streamlining, resulting in the job losses - 38 of which will be from its mortgage operations.

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"Our borrowers and business partners remain bullish about the future of buy-to-let and the private rented sector more generally.

:lol: bullish yeah right , well there up to their necks in BTL what else can one expect them to say ......pathetic :rolleyes:

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"Our borrowers and business partners remain bullish about the future of buy-to-let and the private rented sector more generally.

Translation: We know we're ******ed along with the housing market but some of our backers and customers can't see it yet. We can't believe it.

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Going, going.....

http://www.mortgageintroducer.com/mortgage...93_jobs_cut.htm

Paragon Group consolidation sees 93 jobs cut

10 March, 2008

Paragon Group has announced the expected loss of around 15 per cent of its workforce following a business restructure.

The Group is to consolidate Paragon Mortgages and Mortgage Trust as part of a business streamlining, resulting in the job losses - 38 of which will be from its mortgage operations.

Jobs cut by 1/3

Shares off a touch from their 2006 peak of nearly 8000 to, ahem, 75.

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http://www.guardian.co.uk/business/2008/ma...s.housingmarket

Mortgage bank Paragon admitted that funding problems as a result of the global credit crunch will halve its lending to buy-to-let customers.

The warning, which was accompanied by a profits warning, sent shares in Paragon down 4.5% to 90.75p in morning trading in London.

The firm said pretax profits would be lower in the six months to today than a year ago, partly because of exceptional costs of up to £10m related to an emergency £287m fundraising last month.

Paragon has been forced to cut back on new business because the ongoing financial turmoil is restricting its ability to borrow in the wholesale money markets. As a result, its total buy-to-let loans to new customers in the first half of 2008 will be 50% less than a year ago.

"The credit environment remains difficult, impacting the workings of the money, banking and capital markets," Paragon said. "We continue to expect a return to market stability and to more normal lending activity by the group in due course."

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Why reduce lending by 50%. Why not just up the rates? (or is that effectively the same thing)

Edited by DoctorJ

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What, exactly, does "restructure" mean in the context of a collapsing property market?

The image that just came to my mind was the Alamo after the first wave of Mexican troops was held. The Texans (along with the Cornish contingent) are busy stacking up the bales of hay and re-arranging the wagons before the next assault consisting of a barage from the French built 50 pounders followed by a full on charge of 17,000 troops.

Edited by Realistbear

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See my latest topic post in anecdotals. Lenders are now maximizing the return from their current loan book rather than getting new lending. It's a more effective way of getting profit.

What, exactly, does "restructure" mean in the context of a collapsing property market?

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See my latest topic post in anecdotals. Lenders are now maximizing the return from their current loan book rather than getting new lending. It's a more effective way of getting profit.

i.e. increasing rates. Nice one!

I still don't understand why they have to reduce lending levels rather than offer new loans but at higher IRs

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i.e. increasing rates. Nice one!

I still don't understand why they have to reduce lending levels rather than offer new loans but at higher IRs

:huh:

I don't understand why you can't understand.

They have little to do with each other.

Banks will be upping rates on existing loans where they have enough liquidity to maintain these loans so they can make higher profit.

Banks will only take on new loan business if they believe they have or can get the liquidity to service these loans, if not they cant take on this business no matter if they target high end rates for the particular mortgage sector ie prime, sub prime and all their variables.

To clarify further, money has shrunk back to such a degree banks can not find long term liquidity no matter how much they are willing to pay.

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See my latest topic post in anecdotals. Lenders are now maximizing the return from their current loan book rather than getting new lending. It's a more effective way of getting profit.

And once they get a taste for this, one has to wonder where it will end.

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SPML now biting the dust

Southern Pacific Mortgages look on the verge of implosion, the loan-sharking bastards.

My business got into a bit of trouble in late 04 so I (shock horror) MEWed £15,000 from my flat to keep my business afloat (not to spend on foreign holidays or some flashy *****-extension car).

It worked and the business survived. I moved 15 months after getting my secured loan, at which point it got paid off. Final bill to SPML - £18,300. That's £3,300 in charges over 15 months. Robbing twunts...

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:huh:

I don't understand why you can't understand.

They have little to do with each other.

Banks will be upping rates on existing loans where they have enough liquidity to maintain these loans so they can make higher profit.

Banks will only take on new loan business if they believe they have or can get the liquidity to service these loans, if not they cant take on this business no matter if they target high end rates for the particular mortgage sector ie prime, sub prime and all their variables.

To clarify further, money has shrunk back to such a degree banks can not find long term liquidity no matter how much they are willing to pay.

I see. cheers. I get it now

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  • 294 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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