25th Mar 2015 09:58
LONDON (Alliance News) - OneSavings Bank PLC on Wednesday said it has struck a deal to acquire a portfolio of UK second-charge mortgages from an unnamed major financial services company.
OneSavings said it would acquire the portfolio from a financial services organisation which stopped originating UK second-charge mortgages in 2008 but which has been managing the portfolio since. Second charge mortages are second mortgages on properties, with second priority in case of default.
The mortgages in the portfolio have a current balance of GBP251 million, OneSavings said. The acquisition will take place over a period of four to six months and will not impact on the terms and conditions of the mortgages for borrowers.
"The addition of this loan book is consistent with our overall strategy for the group. Organic origination remains the key driver of our growth but we evaluate inorganic opportunities as they arise. We have disciplined investment criteria and make acquisitions where there is a fit in terms of strategy, risk profile and projected financial returns," said OneSavings Chief Executive Andy Golding.
Shares in the bank were up 1.9% to 280.00 pence on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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