Starling Bank to acquire mortgage book worth GBP 500 mln

Tuesday 14 June 2022 12:03 CET | News

Starling Bank has agreed to acquire a mortgage book worth about GBP 500 million, as the digital challenger attempts to broaden its assets beyond COVID-19 loans.

The startup is buying the loan portfolio from specialist lender Masthaven, according to Financial Times. The acquisition will help Starling diversify lending away from the government-backed COVID-19 loans that constitute most of its assets.

To diversify, Starling has been bidding for other loan books. It acquired Fleet Mortgages in July 2021 for GBP 50 million in cash and shares. The company focuses on lending to professional landlords through financial advisers.

It emerged earlier in 2022 that Starling is also vying for a GBP 1 billion mortgage book being sold by specialist lender Kensington, pitting the challenger against Barclays.

Certain banks offered bounce-back loans of up to GBP 50,000 during the pandemic to struggling small businesses and the Treasury pledged to cover the losses if borrowers failed to repay.

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Keywords: banks, COVID-19, acquisition, challenger bank, digital banking
Categories: Banking & Fintech
Companies: Starling Bank
Countries: United Kingdom
This article is part of category

Banking & Fintech

Starling Bank

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