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Paragon's Interim Statement

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Paragon Company Announcement 16th July

Across the Group's portfolio, the number of accounts in arrears has reduced since 31 March 2008, with the percentage of accounts in arrears remaining at similar levels. The charge for impairment remains consistent with that for the first six months and is in line with expectations. The performance of the buy-to-let book continues to be exemplary and landlords are benefiting from increased rents and yields in the current environment as house purchases have slowed.

Cough, splutter!

Independant 3rd June

B&B, which represents 20 per cent of lending across the British buy-to-let sector, said the number of landlords who were three or more months behind on their mortgage payments had leapt by more than 52 per cent between January and the end of April

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Hard to square really, unless Paragon have genuinely been a bit more cunning in who they lent to, and have managed to avoid most of the dipshit brigade. Just based on a totally unscientific personal opinion, Stevie Wonder would have had trouble missing the fact that Bradford and Bingley were touting for all the BTL business they could get their hands on, whereas I doubt most of Britain has heard of Paragon outside of the context of a railway station in Hull... which kinda shows who was marketing to who.

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Hard to square really, unless Paragon have genuinely been a bit more cunning in who they lent to, and have managed to avoid most of the dipshit brigade. Just based on a totally unscientific personal opinion, Stevie Wonder would have had trouble missing the fact that Bradford and Bingley were touting for all the BTL business they could get their hands on, whereas I doubt most of Britain has heard of Paragon outside of the context of a railway station in Hull... which kinda shows who was marketing to who.

"I just callled...to say...you're bankrupt...."

Edited by Injin

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If you have arrears on an account and you increase the interest rate then the arrears as a mutliple of the monthly payment improves

Example:-

Arrears of £2000. monthgly payment £500 = 4 months

Arrears of £2,000 new increase in monthly payment (following an interest rate hike ) £550 = 3.6 months

An improvement!!!!!

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Soaring at the off:

PARAGON GROUP (LSE:PAG.L)

Last Trade: 70.00 p

Trade Time: 8:06AM

Change: 7.00 (11.11%)

Edit:

Its freeeeeeeeeeeennnnnnzy time!

PARAGON GROUP 72.00 9.00 +14.29%

Edited by Realistbear

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We have a couple of Paragon loans, and they certainly *were* pretty "conservative" when we got them 3 years or so back. Max LTV was 80% I think, no 110% specials, and they did write to our accountants, and ask for copy TAs, likely rental figures from letting agents, etc.

They also own Mortgage Trust, who were similarly pretty careful - usual LTV 75%, 85% if you paid extra. No 100%s there either.

MT also did these brilliant "current account mortgages" which you just pay back as fast as you want like a big overdraft. Like a Virgin One account - you have a paying-in book and cheque-book.

Just get your tenants to pay their rent straight in, and watch the balance owed fall steadily.....

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Two Words ( used by NR by the way for mortage arrears to hide the truth)

PAYMENT HOLIDAY.

just thought id mention it.

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Just get your tenants to pay their rent straight in, and watch the balance owed fall steadily.....

If the rent doesn't cover the outgoings and mortgage interest,the balance will rise steadily! This is happening whilst capital values are plummeting.

As for the quality of Paragon's loans, only time will tell. I am suspicious however. After all they were competing against B&B to lend. I also assume that they were lending on new builds many of which are now being auctioned off at discounts of up to 60%.

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Guest DissipatedYouthIsValuable
We have a couple of Paragon loans, and they certainly *were* pretty "conservative" when we got them 3 years or so back. Max LTV was 80% I think, no 110% specials, and they did write to our accountants, and ask for copy TAs, likely rental figures from letting agents, etc.

They also own Mortgage Trust, who were similarly pretty careful - usual LTV 75%, 85% if you paid extra. No 100%s there either.

MT also did these brilliant "current account mortgages" which you just pay back as fast as you want like a big overdraft. Like a Virgin One account - you have a paying-in book and cheque-book.

Just get your tenants to pay their rent straight in, and watch the balance owed fall steadily.....

At least when you're later paying it back to a nationalised fund you'll be cutting out the middlemen.

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  • 399 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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