The York-based estate agency group, LSL Property Services, has bought the assets of mortgage network provider Home of Choice (HoC) out of administration.

LSL, based in Kings Square, York, already has a financial services arm. It acquired HoC for £1.5 million.

HoC was launched in 2005 and is a mortgage network provider to about 500 self-employed mortgage advisers.

Simon Embley, chief executive officer of LSL, said in a statement to the stock exchange he expected the purchase to increase lending to about £4 billion per year, giving the business the opportunity to leverage its financial services assets across the group.

The deal is not expected to have a major impact on the group's earning in 2010.

Mr Embley said: “HoC is an acknowledged leader in its field. Strategically, this acquisition will strengthen our relationships with key lending clients and increase lending."