The portfolio is comprised of approximately 1,600 UK mortgages and the sale is designed to reduce the group’s exposure to current or recent non-performing mortgages.

The loans have been sold to an affiliate of a fund managed by a global investment management firm.

The financial impact of the sale will be reported in the society’s interim results to be announced for the six months ending 30 June 2017, assuming completion occurs prior to publication.

The transaction is due to complete by the end of April 2017, after which affected borrowers will be written to as soon as practicably possible.

David Cutter, Skipton group chief executive, said: “This is a good transaction for our members as it strengthens an already strong balance sheet and allows us to focus on our core target market.”