Skipton's subsidiaries, Amber Homeloans Limited and North Yorkshire Limited, have agreed the sale of a portfolio of mortgage loans.
Skipton Building Society today announces that its subsidiaries, Amber Homeloans Limited and North Yorkshire Mortgages Limited, have agreed the sale of a c.£220m portfolio of mortgage loans to an affiliate of a fund managed by a global investment management firm.
The portfolio is comprised of approximately 1,600 UK mortgages and the sale is designed to reduce the Group’s exposure to current or recent non-performing mortgages. Amber Homeloans Limited and North Yorkshire Mortgages Limited ceased lending in 2008. This transaction will have the effect of further strengthening the Society’s already strong capital position.
The financial impact of the sale will be reported in the Society’s Interim Results to be announced for the six months ending 30 June 2017, assuming completion occurs prior to publication.
The transaction is due to complete by the end of April 2017, after which affected borrowers will be written to as soon as practicably possible. There is no need for customers to take any action now. The sale is not subject to regulatory approval.
Computershare will continue to service the loans after their sale and also become the master servicer.
Morgan Stanley acted as advisor to Skipton Building Society during the sale.
David Cutter, Skipton 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.”