Barclays strikes deal to buy mortgage lender Kensington

A woman walks past a branch of Barclays Bank, in London, Britain, February 23, 2022. REUTERS / Peter Nicholls

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LONDON, June 24 (Reuters) – Barclays (BARC.L) 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 pounds ($ 2.82 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.

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Kensington specializes 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 pounds 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.

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. read more

“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.

($ 1 = 0.8152 pounds)

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Reporting by Iain Withers; editing by Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

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