Co-Operative Bank to purchase Sainsbury’s 3,500 mortgages months after talks collapsed
T
he Co-Operative Bank is ready to purchase Sainsbury’s Bank’s portfolio of three,500 mortgages, price round £479 million, months after earlier talks had collapsed.
Sainsbury’s mortgage holders could have their loans transferred to the Co-Operative Bank over the subsequent 12 months “to ensure a smooth process”.
Nick Slape, CEO of The Co-operative Bank stated: “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, a subsidiary of the grocery store big, has been aiming to promote its remaining mortgages after it stopped providing new loans in 2019.
Jim Brown, CEO of Sainsbury’s Bank, stated: “We’re pleased to confirm we have agreed the sale of our mortgage book to The Co-operative Bank.
“Closing the chapter on our mortgage offering is a big step in simplifying our business.”
Sainsbury’s and the Co-Operative Bank had been in talks over a deal earlier this 12 months, however these discussions reportedly fell aside in March as a result of the events couldn’t agree on the value.
The deal comes only a week after studies emerged that small business-focused financial institution Shawbrook was contemplating a £3.5 billion merger with the Co-Operative Bank.