Vandaag weer een nieuw tent in de problemen in de UK, Paragon. 39% van de koers af in Londen.
De minister van Financiën zit daar in dikke shit door die bankgarantie die is afgegeven voor de spaarders van NRK tkv de taxpayers.
Mortgage Firm Facing Cash Problems
Updated:10:27, Tuesday November 20, 2007
Thousands of people across the UK could find it more difficult to get a buy-to-let mortgage in the coming months.
The country's third biggest buy-to-let lender, Paragon, has admitted it is facing funding problems, sending its shares diving.
Firm may have to cut lendingThe update from the company, whose costs have soared following the summer credit crunch, alarmed its investors.
It has now warned that it could have to scale back its lending to about half that of a year ago.
The Solihull-based firm admitted: "The deep turmoil in the credit markets is affecting the normal financing difficulties of the business."
It may have to launch a rights issue to raise £280m if other funding arrangements do not become available by February.
Paragon has no depositors and raises its funding by "securitising" - bundling up and selling on - its loans.
Cash for new lending is also financed by a £2.3bn "warehousing" facility from a banking syndicate.
But since the summer credit crisis - sparked by slumping confidence in bonds based on high-risk US mortgages - those avenues have effectively been closed.
Banks are imposing tougher lending criteria, prompting Paragon to warn that terms offered for the renewal of its new lending fund next February were "not attractive".
Chief Executive Nigel Terrington said the credit crunch had been "immensely disruptive".
He added: "While we expect the credit markets to recover from the current distressed position during 2008, the timing and the extent of the recovery will have an impact on our outlook."
The group, which is cutting more than 60 jobs from its Epsom office, warned it would have to scale back its lending "significantly" if it was unable to secure new financing.
The plunge in the group's share price came despite record profits of £91m for the year to September 30 - before the full impact of the summer's financial turmoil.