RBS tables a bid for Tesco Bank’s mortgage book

Michael Lloyd

June 25, 2019

cash purchases

The Royal Bank of Scotland (RBS) has tabled a bid for Tesco Bank’s £3.7bn book of mortgages, Sky News has reported.

This follows Tesco Bank announcing last month that it will exit the mortgage market and sell the book.

If successful, this would be RBS’s largest acquisition since its £45.5bn bailout by the government in 2008. Under the terms of the bailout it was restricted from making acquisitions.

David Hollingworth, associate director of communications at L&C Mortgages, said: “Businesses looking to grow their book and share would be interested in Tesco’s book.

“Because Tesco was relatively new to the mortgage market it has no legacy issues in terms of the book its built.

“It’ll be very much prime type of mortgage lending so I can see why some mainstream brands would be interested in acquiring the book.”

In the last decade RBS’s only corporate purchase was buying financial technology business FreeAgent for around £50m last year.

Both RBS and Tesco Bank declined to comment.

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