Business negotiations result in Paragon taking loan portfolio
Paragon has paid over £43 million for unsecured consumer loans from Royal Bank of Scotland.
Paragon Mortgages has taken on a portfolio of unsecured consumer loans from Royal Bank of Scotland.
Business negotiations on the deal - which cost over £43 million - have been concluded and it is being funded through Paragon's cash reserves.
Nigel Terrington, chief executive of the company, stated the group is really happy to "announce a further loan portfolio acquisition through our investment division".
Negotiation strategies have been key throughout the consultations and the arrangement represents the sixth collection Paragon has purchased since the middle of 2009.
"We continue to see further attractive portfolio acquisition opportunities," Mr Terrington observed.
It is expected the arrangement will be earnings enhancing for Paragon, which specialises in buy-to-let mortgages.
Earlier this year, the firm launched advice for landlords who are failing to take advantage of tax breaks open to them, as 13 per cent of those questioned are not currently claiming mortgage interest.
Posted by David Gleck
Source: Reuters, Money Week, October 27th