Challenger bank makes approach for £600m property lender

Challenger bank Paragon has confirmed it is in talks to buy a £600m residential development finance lender, marking the group’s latest phase of its transformation.

The Solihull-based group has reorganised and rebranded, moving from a monoline centralised lender to an increasingly diversified banking group.

Paragon, which is a specialist buy-to-let property lender, said it “is in the early stages of considering a possible acquisition” of Titlestone Property Finance.

In a statement to the stock market, Paragon said: “The purchase of loan books and bolt-on businesses represents a core part of Paragon’s growth and diversification strategy.

“Paragon confirms that it is in the early stages of considering a possible acquisition of Titlestone. 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.”

Titlestone was launched in 2012 and supports property developers, mainly in the south of England. It has committed more than £2bn across 300 developments in its six years.

Paragon lent £1.9bn last year, with retail deposits almost doubling to £3.6bn.