Paragon snaps up broker firm

Paragon has snapped up the remaining shares in the specialist buy-to-let broker The Business Mortgage Company (TBMC).

In its Interim Management Statement, the firm confirmed it had acquired the remaining 67% of the "strategically important" mortgage broker.

In January 2007, the lender supported the purchase of TBMC by its management, providing facilities of £15.75m and receiving 33% of the equity in the business.

Having suffered during the downturn, TBMC is now likely to report a loss for the year, so Paragon has agreed to temporarily suspend interest payments on its loan in exchange for the remaining equity.