Mortgages will transfer within 12 months of the £464 million deal
Sainsbury’s Bank has decided to sell its mortgage book – comprising of about 3,500 customers and balances of around £479 million – to The Co-Operative Bank in a £464 million deal.
Sky News reported that the banks had spent months in talks over the deal, initially failing to agree on the price before negotiations resumed this summer.
Sainsbury’s said it would inform its mortgage customers how this deal would affect them, including the timing for transferring their mortgage to The Co-Operative Bank, which would come at a later date.
UK's Co-operative Bank buys Sainsbury's Bank's 479 mln stg mortgage portfolio https://t.co/XQZJUFS3GN pic.twitter.com/DFbGLNuNOi
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In September 2019, Sainsbury’s decided to withdraw from the mortgage market to focus on its everyday banking business and further development of its credit cards, personal loans, savings, ATMs, travel money, and insurance businesses.
“After a thorough process, we’ve agreed to transfer ownership of our mortgages to The Co-Operative Bank,” Sainsbury’s Bank stated on its mortgage FAQ page. “We chose them as they are a well-known UK finance provider and are committed to excellent customer service, which is what we want for our customers.
“Nothing immediate will change for customers, and we’ll contact our customers directly in due course with more information soon. Customers do not need to take any action directly as a result of this transaction. Mortgages will transfer within 12 months.”
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