Skipton Mortgages (SML) has announced the purchase of a mortgage portfolio from GMAC-RFC worth almost £30m.
Established in 1995 as a subsidiary of Skipton Building Society, the primary objective of SML is to acquire mortgage portfolios from other lenders. This new acquisition is the 12th since its launch and the fourth this year.
Gordon Jolly, managing director of SML, said: “I am very pleased with this acquisition. We are now lining up another purchase and hope to acquire mortgage accounts worth £300m before the year end. The benefit of purchasing mortgage portfolios this way are the savings in both time and administration costs of setting up the deals.”
The deal is one of the first legal transfers of mortgage portfolios in the UK. Transactions of mortgage portfolios are usually carried out as securitisations, although legal transfer is widespread practice in the US.
Stephen Knight, chairman of GMAC-RFC in the UK, said: “There is always a great deal of competition in the market, which means that some lenders will have too many and others too few mortgages on their books.”
GMAC-RFC is the largest issuer of non-government backed mortgage securities in the US. It specialises in creating mortgage assets through securitisation and portfolio sales.