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MP tells Sainsbury’s Bank not to sell mortgage book to unregulated lender
Sainsbury’s Bank has been asked by a Conservative MP not to sell its mortgage loan book to a private equity firm or an unregulated lender, as the bank continues to consider its options following its exit from the mortgage market.
The bank announced its exit from the mortgage market in September and was taking offers for the sale of its £1.9bn mortgage book, with Lloyds Banking Group rumoured to be one of the lenders interested.
According to This is Money, Kevin Hollinrake MP wrote to Sainsbury’s Bank CEO Jim Brown, asking to have a meeting to discuss the bank’s future plans.
He also urged Sainsbury’s Bank not to sell its mortgage book to a “vulture fund”, as he said: “The last thing we want to see is a loan book sold off to an unregulated lender, which causes tremendous problems.”
Hollinrake was a member of the Housing, Communities and Local Government Select Committee when it was dissolved for the general election in December.
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A Sainsbury’s Bank spokesperson told Mortgage Solutions: “As announced in September, we have stopped issuing new mortgages and are exploring options for the existing book.
“One option is to sell the book and we are exploring this option with interested parties. We emphasise that this is only one of the possible options.”