NORTH west group Freedom Finance has sold its mortgage lending business to investment bank Merrill Lynch for an undisclosed multi-million pound figure.

Freedom Lending provides specialist mortgages via brokers, such as those to people seeking buy-to-let properties. It was established in May 2004 and employs 65 people at its Wilmslow headquarters.

Completions have rocketed from around é10m a month in the first year to é60m a month in 2006. Chief executive Colin Snowdon said he expects staff numbers to almost double over the next 12 months and is confident the business can grow the amount it lends to é5bn within a few years.

Merrill Lynch made an approach for the business earlier this year.

Mr Snowdon said: "The backing of Merrill Lynch will enable us to accelerate the next phase of the company's development. I have been ambitious for this business from the word go, and we now have the wherewithal to compete confidently with the major players in our sector.

Impact

"The deal will have a positive impact on the products we are marketing, and puts us in a very strong position to increase our presence in the dynamic UK residential mortgage market.

"The north west has proven yet again that it can nurture market-leading businesses which are attractive acquisition prospects for global organisations." Merrill Lynch said it would give Freedom Lending a new trading name before the end of the year.

The terms of the deal were not disclosed but the M.E.N. understands Merrill Lynch has paid significantly more than the reported é5m for the business. It has worked with Freedom Lending for some time, regularly buying bundles of mortgages.

Freedom Finance founder and chief executive Rupert Webb said: "This deal will enable Freedom Lending to accelerate its growth and enable Freedom Finance to forge ahead with plans to strengthen its position as a pan-European company."

Merrill Lynch has total client assets of almost é1 trillion.

kevin.feddy@men-news.co.uk

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