In an announcement to its shareholders, Paragon acknowledged press speculation about a possible purchase of the development finance lender, and highlighted that “the purchase of loan books and bolt-on businesses represents a core part of Paragon’s growth and diversification strategy”.
However, Paragon emphasised that there was a long way to go before any deal was done, stating that it was in the “early stages of considering a possible acquisition” of Titlestone.
Its statement concludes: “There is no certainty of an agreement being reached nor as to the terms of such agreement. A further update will be provided as appropriate.”
Paragon purchased specialist broker Iceberg back in December, for an initial £5.2m, with a further £13m to be paid over the next five years if certain conditions are met.
Paragon is due to announce its half year results on 24 May. In its first quarter results, the firm revealed buy-to-let lending was up by 65% year-on-year to £469.8m.