LSL Property Services is conducting due diligence on Pink Home Loans as it considers a potential takeover of the mortgage network, Money Marketing understands.
It is thought LSL is looking to increase the scale of its mortgage proposition after it bought Home of Choice’s assets from administration for £1.5m in May.
It is understood Pink’s parent company Skipton Group has been looking to shed the network for some time.
Skipton’s mortgage network went through a series of cost cutting measures last year due to reduced volumes in the mortgage market.
The last set of available accounts for Pink show it made a £3.6m loss in 2008 compared to a £1.6m profit in 2007.
Last month Skipton Group reported pre-tax profits of £21.7m for the first half of 2010 but its mortgage and savings division reported a loss of £5..7m.
Pink, Skipton and LSL all declined to comment.