Buy-to-let market boosted by return of Paragon?

Posted: 04 Oct 2010 08:05:03 GMT

The return of Paragon to the buy-to-let mortgage market should increase competition among lenders, it has been suggested.

Editor of Property Hawk Chris Horne said Paragon has become on the first lenders to secure funding from the wholesale division for a long time.

"The fact that they are able to do that is promising for the long-term lending in the buy-to-let sector because obviously, as a result of the credit crunch, that side of the funding disappeared," he remarked.
More competition may put pressure on lenders to reduce their fees in order to attract customers and Paragon's return should have a positive effect for consumers, Mr Horne added.

He claimed there is still a lack of confidence due to the uncertainty on house prices and proposed public sector spending cuts and this indicates a lot of proprietors are "sitting on their hands" to see how things will turn out.

According to a recent surgery by Upad, worries about the economy and unemployment are still affecting landlords' confidence.
 

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