Standard Life sells mortgage arm to Barclays

Standard Life has limited the lending activites of its banking arm during the downturn, and says it no longer sees growing its lending activity as consistent with its long-term financial objectives. Barclays and Standard Life have entered into a strategic arrangement, with an initial focus on developing a simplified pension product. Standard Life Bank has outstanding mortgage loans of £8.8bn, and customer deposits of £5.5bn at 30 June 2009. The 268 employees of Standard Life Bank will transfer to Barclays.