After talks initially being stalling earlier this year Co-operative Bank has finally completed the purchase of Sainsbury’s Banks mortgage book.
The deal sees Sainsbury’s, which stopped lending in 2019, exit the mortgage market while Co-op Bank acquires some 3,500 new customers with mortgage balances of approximately £470m
Nick Slape, chief executive of The Co-op Bank said: “We are delighted to have agreed this transaction with Sainsbury’s Bank.
“Once the transfer activity is complete, we look forward to welcoming the new customers who will benefit from our ambitious new technology platform, which will simplify our banking services and will make us more efficient, giving us the flexibility to introduce new products and services.”
The Co-op has been on the lookout for acquisitions for some time having previously failed in a bit for TSB.
The deal is expected to complete alongside the transfer of beneficial ownership tomorrow (August 15th, 2023), with legal title transfer occurring within 12 months.
