Skipton Building Society has sold a £220m portfolio of mortgage loans to reduce the group’s exposure to current or recent non-performing mortgages.
Skipton sold the portfolio, which comprises of 1,600 mortgages, to an affiliate of a fund managed by a ‘global investment management firm’.
David Cutter, Skipton’s 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.
The impact of the sale financially will be reported Skipton’s interim for the six months ending 30 June 2017 as long as the deal completes in time.
Morgan Stanley acted as advisor to Skipton Building Society during the sale.
Computershare will continue to service the loans after their sale and also become the master servicer.
The sale is not subject to regulatory approval.