Natwest buys Metro Bank’s £3bn mortgage portfolio
Natwest is set to buy Metro Bank’s £3bn mortgage portfolio in a deal which will see 13,000 customers transferred over to the lender.
The deal comes after the high street bank returned to profit after taking a £.21bn hit from the pandemic in the first half of the year.
“Growing our mortgage book is an important strategic priority as we build a bank that delivers sustainable returns for shareholders,” said Natwest chief executive Alison Rose.
“The addition of this loan book will supplement the strong organic growth that we continue to achieve.”
It comes after news Natwest would resume offering loans worth up to 90 per cent of a property in a boost for first-time buyers.
Mainstream lenders have been cautious since the housing market reopened over the summer amid concerns that falling house prices could leave borrowers in negative equity.
Natwest, formerly RBS, tonight announced it had entered into an agreement with Metro to buy the portfolio, which consists of owner occupied residential mortgages with a weighted average current loan to value of c. 60 per cent.
And in some rare good news for Metro Bank, the £3.1bn purchase price represents a 2.7 per cent premium on the gross book value.
The challenger bank swung to a £240m loss in the first six months of the year, having been forced to take provisions to cover pandemic-related loan impairments.
Its share price has collapsed since the bank became involved in an accounting scandal in January last year.