GE, which owns the specialist lender, signed an agreement this week to sell a portfolio of mortgage loans, with a portion of this sold to the group which owns Kensington Mortgages.
The purchase which has a face value of £3.8bn, was made by Blackstone, TPG Special Situations Partners and CarVal Investors. The transaction is expected to close in December but terms of the transaction were not disclosed.
Reports surfaced in September that investment firms and owners of Kensington, Blackstone and TPG, were looking to buy £2.5bn of GE Money’s home mortgage portfolio.
In a statement published by All Types of Mortgages’ (AToM), the distributor and packager confirmed that it would no longer be able to undertake a new decision in principle (DIP) on GE’s mortgage lending.
Applications made through GE must be offered by 4 December, which means current pipelines will be affected, AToM said. It added that where a DIP had been accepted, it could no longer process if the application had not been submitted to its Watford office.
AToM said: “We would like to thank all of the GE staff for their help with AToM’s cases over the years and for their contribution to the specialist sector. This is a lender who has been of great value to AToM and without doubt will be missed. We wish them every success for the future.”