Arbuthnot Banking sells Tay mortgage portfolio to OneSavings Bank

Arbuthnot Banking Group has exchanged and completed an agreement with 5D Finance, a member of the OneSavings Bank (OSB) group, to divest a residential mortgage portfolio called Tay mortgage.

The divested Tay mortgage consists of the remaining balances from the acquisition made in late 2014, when Arbuthnot Banking Group bought the loans from the administrators of the Dunfermline Building Society.

As of 31 January 2021, the customer loan balances totaled £54.9m and had a blended yield of around 2.95%.

Arbuthnot Banking sells Tay mortgage portfolio to OneSavings Bank. Photo courtesy of Tumisu from Pixabay.

The consideration of nearly £53.8m received by Arbuthnot Banking Group will be in cash and will be 97.9% of the outstanding loans.

The private banking company anticipates releasing as a credit to the profit and loss account the remaining original discount on the deal which totaled £3.4m as of 31 January 2021.

As a result of the deal, the economic benefit of the portfolio will have passed to OneSavings Bank earlier this month.