News has emerged this morning that Paragon Mortgages is acquiring rival mortgage lender Britannic Mo...
News has emerged this morning that Paragon Mortgages is acquiring rival mortgage lender Britannic Money for a cash sum of £18.7m, but staff so far have mixed messages about what happens next.
An announcement first thing this morning from the FTSE 250 company was placed on the London Stock Exchange's RNS service, stating the two firms hope to complete the deal by the end of the day.
Paragon employees are said to be in a meeting to find out about the deal, but its telephone staff are lead to believe so far that Britannic will keep its branding and there are unlikely to be any major changes.
This differs from the official statement from Paragon which says the firm will rebrand Britannic as 'Mortgage Trust' "at the earliest opportunity", focusing on the mid-mark buy-to-let sector.
Paragon also says financial savings will be made by integrating several functions within the enlarged group, which will be managed by Pargaon's chief operating officer Pawan Pandya.
Both Paragon and Britannic are competitors in the buy-to-let market, but Paragon says it intends to focus future efforts on the "professional landlord market".
Initial indications are that both divisions will also continue to do business through IFAs and professional mortgage brokers.
Paragon Group's existing director of mortgages, John Heron, will take responsibility for implementation of Mortgage Trust new business strategy and development.
The deal is expected to be funded through existing cash facilities and new debt, says the Paragon statement.
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