Credit, Collections & Insolvency News
NatWest has that it has announced that it has entered into an agreement with Metro Bank to purchase its £3.1 billion mortgage portfolio in a deal that will see 13,000 customers transferred over to the lender.
The £3.1 billion purchase price represents a 2.7% premium on the gross book value. The portfolio consists of owner-occupied residential mortgages with a weighted average current loan to value of c.60%.
Commenting on the transaction, Alison Rose, Chief Executive Officer of NatWest said “Growing our mortgage book is an important strategic priority as we build a bank that delivers sustainable returns for shareholders. The addition of this loan book will supplement the strong organic growth that we continue to achieve.”
“Our strong capital position, well above the target range, continues to provide the flexibility to navigate the uncertain environment and support our customers during the challenging times ahead.”
Metro Bank’s CEO Daniel Frumkin Chief Executive Officer said “The sale will enable us to shift our asset mix and expand our unsecured lending portfolio, following our entry into the market with the acquisition of RateSetter earlier this year. The transaction also removes any current need to issue MREL qualifying debt.”