Paragon Banking Group has responded to speculation around a possible acquisition of Titlestone, the residential development finance lender.

In a statement to the stock exchange, Paragon said the purchase of loan books and bolt-on businesses represents a core part of Paragon’s growth and diversification strategy.

Paragon confirmed that it is in the early stages of considering a possible acquisition of Titlestone but that there is no certainty of an agreement being reached nor as to the terms of such agreement.

The group said a further update will be provided as appropriate.