Mortgage market falling to specialists, says Killik

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Some specialist lenders will continue to do well even if the housing market turns south as they will be able to rely on a better quality client base, says stockbroker Killik & Co. in a new note.

Although focused on listed buy-to-let specialist Paragon, it and peer Kensington should see more interest in their businesses by both clients and investors as the market continues to level off. “We believe that Paragon represents an excellent investment at 348p/share, because the group’s principal exposure is to the professional buy-to-let investor, which is a group that is typically not highly geared, and has a track record of holding property and remaining creditworthy throughout previous residential property downturns,” Killik states. ”We believe that the outlook for Paragon’s earni...

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