The deal will allow West Brom to use the NewWorld brand, although the portfolio will be managed by a subsidiary of West Brom, West Bromwich Mortgage Company Limited.
Andrew Messenger, chief executive of West Brom, said: "This purchase represents another significant step in the Society’s growing reputation for acquiring quality mortgage portfolios. Being selected ahead of other major lenders demonstrates the expertise we have gained in this specialist area. We have exciting plans to develop the prestigious NewWorld brand name even further. The West Brom is very much in expansion mode."
Rob Adams, chief exectuive officer, First State Investments, said: "The Comonwealth Bank of Australia has reviewed its development opportunities in the UK. The Bank has decided to focus on its fund management and institutional banking operations, and to withdraw from the residential mortgage market. We are delighted that the West Brom has purchased the New World portfolio and that the brand name will continue to be used. The West Brom is a leading name in the mortgage market and we believe that our customers and intermediaries will continue to receive a first-class mortgage service."
