Barclays strikes deal to buy mortgage lender Kensington
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
Barclays announced on Friday it had struck a deal to acquire specialist lender Kensington Mortgage Company, to extend its reach in Britain’s buoyant housing market.
The bank said if the deal is completed as planned later this year or early next, it would pay around £2.3 billion (S$3.92 billion) for the 600-strong company.
Kensington has been carved up and sold by its private equity owners Blackstone and Sixth Street, which took the firm off the stock market in 2014.
Kensington specialises in providing mortgages to people with complex incomes, such as the self-employed.
The final price will depend on the size of Kensington’s mortgage portfolio at the time the deal completes, with Barclays estimating it would comprise around £2 billion worth of home loans.
Barclays said the deal would be funded from existing resources and would reduce its core capital ratio by around 12 basis points.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
British house prices have continued to rise in recent months despite rampant inflation pressuring the cost of living for households, although experts are predicting a slowdown later this year.
“The transaction reinforces our commitment to the UK residential mortgage market and presents an exciting opportunity to broaden our product range and capabilities,” said Matt Hammerstein, CEO of Barclays Bank UK. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
