Two Skipton Building Society subsidiaries have agreed to sell an around £220m portfolio of mortgage loans to the affiliate of an unidentified fund managed by a “global investment management firm”.
The portfolio is made up of around 1,600 UK mortgages which are being sold to reduce the building society’s exposure to current or recent non-performing mortgages.
Skipton’s two subsidiaries, Amber Homeloans Limited and North Yorkshire Mortgages Limited, ceased lending in 2008.
The building society said the deal would also strengthen its capital position.
David Cutter, Skipton Group chief executive, said: “This is a good transaction for our members as it strengthens an already strong balance sheet and allows us to focus on our core target market.”
The transaction is due to complete by the end of April 2017, after which affected borrowers will be written to “as soon as practicably possible”.
Computershare will continue to service the loans after their sale and also become the master servicer.
The financial impact of the sale will be reported in Skipton’s interim results for the six months ending 30 June 2017, assuming the deal’s completion happens before that.
The sale is not subject to regulatory approval.
damian.fantato@ft.com
