The Co-Operative Bank is set to buy Sainsbury’s Bank’s portfolio of 3,500 mortgages, worth around £479 million, months after earlier talks had collapsed.
Sainsbury’s mortgage holders will have their loans transferred to the Co-Operative Bank over the next year “to ensure a smooth process”.
Nick Slape, CEO of The Co-operative Bank said: “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 supermarket giant, has been aiming to sell its remaining mortgages after it stopped offering new loans in 2019.
Jim Brown, CEO of Sainsbury’s Bank, said: “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 year, but those discussions reportedly fell apart in March because the parties couldn’t agree on the price.
The deal comes just a week after reports emerged that small business-focused bank Shawbrook was considering a £3.5 billion merger with the Co-Operative Bank.
