Sky News reports that Co-operative Bank has tabled a £650m offer for Sainsbury’s Bank’s mortgage book.
Insiders have told Sky News that Co-operative Bank appears to be the front-runner for the book with a number of other parties also reported as being interested.
It is understood that Starling Bank, which swooped for buy-to-let lender Fleet Mortgages back in 2021, had also expressed an interest in the book but has now withdrawn.
Sainsbury’s ceased new mortgage lending in 2019. Last week Sky News reported that fellow supermarket giant Tesco was also considering selling off its mortgage book.
Co-operative has been looking to make acquisitions for a while now, having previously failed in two bids for TSB.
Last year Nick Slape, chief executive of the Co-operative Bank, told the Financial Times the lender was “already in the space where we can go and acquire a prime mortgage book”, also indicating that the Machester-based bank would consider a new approach for TSB should the opportunity arise.
Co-operative Bank’s annual results are due out next week.
