Paragon have announced that they are entering the buy-to-let lending market again.
It seems that the new range of buy-to-let products will be targeted at professional landlord investors. Paragon will apparently commence lending with immediate effect through a panel of brokers and will widen distribution over time. Paragon says it will also accept direct business.
If the investment institutions are buying securitised debt again then it is quite likely that others will start to follow. Apparently Paragon have managed to secure a £200m mortgage warehouse facility from Macquarie Bank.
Paragon have publicly stated that:
“The facility will allow the group to recommence lending to the private rented sector, a segment of the UK housing market that has seen considerable expansion in recent years and in which the group has been a major participant. Demand from tenants for rental properties in the UK has been strong and is expected to remain buoyant going forward.”
The fact that Paragon are back is not so special in itself, their rates were never that great. It does however show that lenders can start to access funds again, which may come as a surprise on the back of reducing house prices.