Starling Bank has agreed to acquire a mortgage book worth about £500m, according to reports in the Financial Times.
The move further broadens the challenger bank’s portfolio sources familiar with the matter told The FT.
Back in February Masthaven confirmed that it would be withdrawing from the market. Masthaven was founded as a non-bank lender in 2004 and acquired a banking licence in 2016.
Meanwhile, Starling has been looking to broader its portfolio beyond bounce-back loans and the coronavirus business interruption loan scheme (CBILS).
The bank’s last accounts at the end of June show it has lent a total £2.3bn, of which £2.2bn is bounce-back loans and CBILS.Â
Over recent months the bank has been bidding for other loan books. It acquired Fleet Mortgages in July last year for £50mn in cash and shares.Â
Earlier this year it emerged that Starling was also vying for a £1bn mortgage book being sold by specialist lender Kensington.
