Paragon, which has been recognized as the largest buy-to-let lenders in the housing market, is going to make a bright comeback for the first time in 18 months.
Alongside many lenders, Paragon was also snapped by the credit crisis, but now it is expecting to perform well in the market and is making £1bn a year in new mortgages.
As the demands of tenants are soaring, rents of the houses are also increasing. Fortunately, it will be a bonus for Paragon, as previous landlords are selling their property.
However, it has been reported by the Land Registry that house prices in England and Wales have soared up a little in the month of August.
Paragon had left the buy-to-let market in February 2008 because its profits had been struck by the credit crunch.
Macquarie Bank has supported Paragon by giving a £200m debt facility, to make a fantabulous come back into the sector.
Chief Executive of Paragon, Nigel Terrington said, "Competition in the mortgage market has been sorely lacking, particularly as specialist lenders have largely been unable to secure funding or government support to enable them to compete against High Street lenders".
Now, Paragon has planned that it will offer mortgages to its investors, who will pay a minimum 25% of deposit.
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