The Co-operative Bank has confirmed its plans to acquire Sainsbury’s Bank’s mortgage portfolio as the supermarket lender ‘closes the chapter’ on its mortgage offering.
The mortgage book is worth around £479m made up of around 3,500 home loans.
The supermarket bank announced that it would stop offering new mortgages in September 2019.
The mortgage loans will transfer to The Co-operative over a one-year period, which the bank says will ensure a smooth process.
The Co-operative Bank chief executive Nick Slape says: “We are delighted to have agreed this transaction with Sainsbury’s Bank.
“Once the transfer activity is complete, we look forward to welcoming the new customers who will benefit from our ambitious new technology platform, which will simplify our banking services and will make us more efficient, giving us the flexibility to introduce new products and services.
“This transaction, our first portfolio acquisition in more than a decade, further demonstrates the progress we have made in recent years and our strength in what remains a competitive UK mortgage market.”
Sainsbury’s Bank chief executive Jim Brown says: “Closing the chapter on our
mortgage offering is a big step in simplifying our business.
“It’s been really important throughout the process that we find a buyer that will best meet the needs of our customers.”
