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."
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