The loans comprise residential mortgage customers, including first-time buyers and borrowers with complex circumstances.
Market Harborough Building Society said the deal demonstrated its focus on borrowers in need of a flexible lending approach backed by specialist understanding and pragmatic underwriting.
Growing Market Harborough Building Society in a ‘considered way’
The lenders said the transaction aligned with their shared aim to improve access to borrowing for people who may face barriers, including first-time buyers, self-employed applicants and foreign nationals.
The deal could also lay the foundation for a broader ongoing partnership, as Market Harborough Building Society continues to review opportunities that support its strategy, ambition and risk appetite.
Iain Kirkpatrick, chief executive officer of Market Harborough Building Society, said: “This acquisition is an important and commercially attractive step in our growth strategy. We want to grow the society in a considered way, deploying our capital where we can achieve appropriate returns, manage risk carefully and stay true to our purpose as a mutual.
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“This portfolio allows us to broaden our lending reach, support borrowers whose needs may not always fit standard models and build further resilience in our balance sheet.”
He added: “At a time of renewed focus on the role mutuals can play in financial services, this transaction shows how building societies can grow responsibly, compete effectively and bring member-owned values to a broader range of markets. Supporting under-served borrower groups aligns closely with the founding purpose of our sector and our ambition to make Market Harborough Building Society stronger, more relevant and more impactful for the future.”
Graham McClelland, chief executive of Gen H, said: “We’re very pleased to have reached this agreement with Market Harborough Building Society. The portfolio reflects high-quality lending originated through Gen H, which benefits under-served groups of aspiring homeowners, and it is important to us that we align ourselves with industry partners who share our values.
“Market Harborough brings deep lending experience and a clear mutual purpose, making it a strong long-term home for this portfolio.”
