Potential bidders for Paragon could complete their due diligence as early as next week when many of the UK buy-to-let mortgage lender’s senior managers return from holiday for further talks about a possible investment.

Blackstone of the US, Bridgepoint of the UK and a third unidentified private equity bidder are carrying out due diligence, while other groups, including JC Flowers and Apollo Management, are watching closely.

However, the due diligence process, organised by UBS, has proved complicated, as the three groups that are actively examining Paragon have been forced to comb through a large number of securitisation transactions.

Financial Times