View more on these topics

Paragon may be close to a return to new lending

Stockbroker Arden Partners has told investors that buy-to-let specialist Paragon could be “weeks away” from a return to new lending.

Last week, Arden said Paragon is in a position to restart new lending due to a marked imp-rovement in the securitisation market although Paragon itself will not be drawn on timescales. Arden expects the lender to make the announcement of a return around the time of its first-half results on May 18.

Arden says: “Resumption of new lending is weeks away. The securitisation market has imp-roved significantly. Paragon is positioned to enable new lending to recommence.”

The stockbroker also says it expects the resumption of lending to result in a £300m special purpose vehicle, which it expects to generate returns of 0.84 per cent on the new lending.

A Paragon spokesman says: “What we have said previously is that we have been encouraged by what has happened in the wholesale funding markets. We have never made any secret of our intention to get back into new lending but we have never put any timescales on it.”

Mortgages for Business managing director David Whittaker says: “There has been much speculation that Paragon would soon return following their ann-ouncement in their results last year that it would be looking for opportunities to re-enter the market.

“Given that their half-year results are due out May 18, you would expect either a launch at that time or a very firm commitment to do so.”

Paragon ceased new lending in February 2008 when it failed to secure commercially acceptable terms to extend the loan facility used to fund lending.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com