Paragon eyeing up Hampshire Trust

Mortgage provider Paragon Group of Companies backed up press speculation on Monday morning by confirming that it is thinking about acquiring small private bank Hampshire Trust.

The Sunday Times reported yesterday that the buy-to-let lender was in discussions with Hampshire Trust over a deal that would grant it a banking licence for the first time, allowing it to start offering savings accounts its customers.

In a statement, the company said: "The Paragon Group of Companies PLC notes the recent press speculation and confirms that it is in the early stages of considering the acquisition of Hampshire Trust Plc, a wholly owned subsidiary of National Counties Building Society.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"There is no certainty that a transaction will be concluded. Paragon will update the market when it is appropriate to do so."