Co-op Bank to acquire Sainsbury’s Bank’s mortgage portfolio

The sale, which is expected to be completed tomorrow (15 August), follows an announcement from Sainsbury’s Bank almost four years ago that it’d be stopping all new mortgage sales and was reviewing options for the existing mortgage book.

Sainsbury’s Bank chief executive Jim Brown said: “We’re pleased to confirm we have agreed the sale of our mortgage book to The Co-operative Bank. Closing the chapter on our mortgage offering is a big step in simplifying our business.

“It’s been really important throughout the process that we find a buyer that will best meet the needs of our customers. We chose The Co-operative Bank as it’s a well-known UK mortgage provider, committed to providing excellent customer service, so we are confident that The Co-operative Bank will serve our customers well.  

“The sale of the mortgage book will support our strategy to reshape our portfolio and focus on offering capital and cost efficient, mobile-led financial services to loyal Sainsbury’s and Argos customers.” 

The Co-op Bank’s chief executive Nick Slape added: “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.

“This transaction, our first portfolio acquisition in more than a decade, further demonstrates the progress we have made in recent years and our strength in what remains a competitive UK mortgage market.”