Paragon will limit its secured loan lending to existing customers only from April 2009. In an interim management statement this morning the lender says it has seen lower levels of secured lending this year, compared to previous.
It says: “Secured personal finance lending for the quarter has been at lower levels than those for the corresponding period last year, reflecting lower levels of activity in this market. From April 2009 lending activity is likely to be limited to further advances to existing customers.”
It also revealed a pre-tax operating profit of £7m for the three-month period to December 31.
In a statement to brokers today, John Webb, managing director of Paragon Personal Finance, says: “As many of you will be aware, PPF’s new business funding capability expires on 12 April 2009.
“At this time, we have been unable to secure new funding lines and so secured loan lending is likely to be limited to further advances to existing customers from April 2009. We want to tell you this now so that you may manage your pipeline business and costs accordingly.