Barclays completes deal for Kensington Mortgages

Barclays Bank UK PLC has acquired specialist mortgage lender Kensington Mortgages, in a deal completed on Tuesday.

The business was previously owned by companies controlled by funds managed by Blackstone Tactical Opportunities and funds affiliated with Sixth Street.

The acquisition will allow Barclays to expand its mortgage offering and become one of the few major banks with a specialist mortgage product.

Kensington Mortgages, based in Maidenhead, has approximately 600 employees and originated £1.9bn of mortgages in the year ended 31 March 2022.

The company is known for its market-leading data and technology platform, which has facilitated profitable growth, product innovation, and exceptional loan underwriting performance.

All of Kensington’s employees will become part of the wider Barclays Group, and the business will continue day-to-day operations as usual, retaining its brand as a largely standalone business.

However, the acquisition will provide Kensington with the financial strength, deposit funding base, and operational reach of Barclays as it continues to grow and innovate to support borrowers with complex incomes.

Mark Arnold, CEO of Kensington Mortgages, said: “Today marks the start of an exciting new chapter of growth for Kensington.

“We have a strong track-record in the specialist mortgage space, using our proprietary technology, data analytics and human insights to design innovative products and make lending decisions to serve our customer base – the self-employed and those with multiple or variable incomes.

“As a major UK bank with a broad reach and offering, Barclays is well-placed to support our expansion. We look forward to working with them closely to bring our propositions to a wider range of individuals across the UK.

“And as we enter this new chapter, we would like to thank Blackstone and Sixth Street for all their support and investment over the last eight years.”

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