Sub prime lender may be about to re enter loans market

Sub prime lender Paragon announced last week that the buy-to-let lender was getting closer to starting new lending.

Rumour has it that management at the group met with bankers and lawyers last week to discuss the resumption of lending.

The company said last November that any improvements in funding markets would encourage it to look more confidently at reinstating its funding programme to support new lending.

Paragon was forced to stop new lending in early 2008 because of higher funding costs amid the financial crisis. The group trades at a big discount to its net asset value, but usually trades at a premium when lending.

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