Lloyds acquire Tesco’s resi mortgage portfolio
Lloyds Banking Group have acquired Tesco Bank’s UK residential mortgage portfolio.
The purchase was completed for a total of £3.7bn.
As part of the transaction, 23,000 mortgage customers will be transitioning from Tesco Bank.
The banking group points to its free capital build, which it said gives it the flexibility to consider inorganic growth opportunities in selected target areas where it sees value for shareholders.
The legal transfer from Tesco Bank to Halifax took place on 30 March 2020.
A spokesperson for Lloyds Banking Group, said: “The purchase price represents a 2.5% premium on gross book value.
“It will be funded using existing internal resources with minimal impact on capital.
“We believe that Lloyds Banking Group, through our Halifax brand will make for a good home for Tesco mortgage customers.”