Financial News

• Brown dismisses housing crisis fears (09 04 2008 10:15)
• Mortgage hope offered by bank (09 04 2008 10:15)
• Consumer morale 'falls again' (09 04 2008 10:15)
• Bristol & West withdraws deals (09 04 2008 10:15)
• Retirees feel 'unhappy due to no longer working' (09 04 2008 10:15)
• Severn Trent to be fined £36m (08 04 2008 04:15)
• Brown to announce first time buyers help (08 04 2008 04:15)
• UK bank details 'for sale by thieves' (08 04 2008 04:15)
• Last 100% mortgage to disappear (08 04 2008 04:15)
• High earners 'shut out of market' (08 04 2008 04:15)

Subscribe!

Paragon admits halving lending

Buy-to-let loans lenders Paragon admitted today that it is scaling back their mortgages due to the credit crunch.

According to the firm, lending to landlords has halved in recent months, due to the firm suffering problems with raising revenue in current financial conditions.

Many lenders, Paragon included, gain funds to pass on to borrowers through taking out loans on the global money markets.

However, the credit crunch has slowed this cash-flow significantly - leading to many smaller mortgage firms feeling the squeeze.

Commenting, finance director at Paragon Nicholas Keen said: "The credit environment remains difficult, impacting the workings of the money, banking and capital markets.

"If you look at the credit markets at the moment they don't look like they're getting any better…if anything they look like they're getting a bit worse so it could be a long wait until the capital and bank markets are back to a normal level of functional operation."

Send this article to: