Paragon deals blow to housing market

Paragon, Britain’s number-three buy-to-let lender, has become the latest victim of the credit crunch. The lender has been forced to line up an emergency rights issue as borrowing from other banks has become too expensive.

Paragon (PAG), Britain's number-three buy-to-let lender, has become the latest credit-crunch victim. It has warned that borrowing from other banks is becoming too expensive and so it has lined up an emergency £280m rights issue.

Paragon is having to scale back growth, effectively closing to new business from February, noted Philip Aldrick in The Daily Telegraph.

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