Scarborough Building Society has sold two mortgage portfolios worth almost £500m to Basinghall Finance, West LB's newly formed mortgage lender.
The deal will form part of a third party administration partnership, and is part of wider growth and diversification plans for Scarborough Group, as it claims the deal with the UK subsidiary of the German bank, is strategically important.
Assets sold to Basinghall Finance come from Scarborough’s wholly owned subsidiary North Yorkshire Mortgages, but it will continue to administer these and other mortgages for Basinghall, through its third-party administration operation SMS Mortgage Services.
John Carrier, chief executive at Scarborough, says Basinghall is a key client and one which will help transform the organisation for an even more prosperous future.
He adds: “In today’s extremely challenging financial services environment, it is important for organisations like ours to adapt, innovate and develop new business opportunities and solutions of this nature. This launch, combined with our new systems, takes us to the forefront of the marketplace for new business origination and as a provider of outsourced mortgage systems.”
Martin Frazer, commercial director at Scarborough, added the launch, coupled with the aim of further developing the product offering to include more specialist lending segments means there will be lots more good news to come out of Scarborough in the months and years ahead.
Meanwhile, Simon Wood, spokesman for Basinghall, says: “We are delighted to have worked with Scarborough on these first important acquisitions which help our business plan get off to a good start.”
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