Monday, January 28, 2008

The UK’s 3rd biggest Buy to Let lender staving off the inevitable

Paragon shareholders vote in favour of rights issue

Paragon has confirmed that its shareholders have voted unanimously in favour of its proposed rights issue at its Extraordinary General Meeting today. The buy-to-let specialist lender had announced to the stock market in November that it would have to do an emergency rights issue as a result of funding problems caused by the credit crunch. It has since revealed that it will not be accepting any new lending from February 28 as its warehouse loan facility is not being renewed.

Posted by jack c @ 03:34 PM (1290 views)
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10 thoughts on “The UK’s 3rd biggest Buy to Let lender staving off the inevitable

  • Paragon is doomed. No new lending ??? No new sales??? funny sort of business.

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  • little professor says:

    “It has revealed that it will not be accepting any new lending from February 28 ”

    So what is their business model? Are they just going to rely on their existing mortgage book?

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  • Yeah – they’ve calculated that their customers are so much up to their a***s in debt that they cannot possibly pay it back in one lifetime.

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  • My understanding is that the only new business they will be able to take in is “top up’s” to existing mortgages which presumably means they will ultimately run off the existing mortgage book – as sovietuk says they look doomed. This is a big blow to BTL lending.

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  • Keep an eye on their shares from today morning.

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  • it_is_going_with_a_bang says:

    Accepting no new lending? They must have a very small ‘sales’ dept. these days.

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  • PARA-GOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOONE

    That’s great!

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  • In the words of the old song –

    But there’s nothin’ so lonesome, so dull or so drear
    Than to stand in the bar of a pub with no beer

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  • Interesting!

    So they are going to rely on people continually remortgaging with them?

    Mmmmmmm….

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  • I just wish someone would put this dying animal out of it’s misery…..

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