At 31 December 2002 Britannic Money had loan assets under management of £2.2 billion, of which £0.9 billion were in respect of buy-to-let loans and the balance owner-occupied first mortgages. The statutory consolidated financial statements of Britannic Money reported a pre-tax loss of £5.2 million after tax for the year to 31 December 2002, at which date net assets stood at £42.2 million.
Britannic Money will be rebranded Mortgage Trust at the earliest opportunity and will continue to run as a discrete operation, focusing on the mid-market buy-to-let sector. John Heron, Paragon Group’s Director of Mortgages, will be responsible for the development and implementation of Mortgage Trust’s new business strategies.
Jonathan Perry, Paragon’s Executive Chairman comments: “Our acquisition of Britannic Money, bringing together two major buy-to-let lending organisations, will create a major force in this very attractive niche sector. Our complementary strengths point to strong growth opportunities which together with substantial cost savings will be earnings enhancing in the 2003/04 financial year. The buy-to-let mortgage market is one of the most attractive sectors in the mortgage market; credit quality is excellent and there remain significant growth prospects for the future.”
