The Mail on Sunday reported that the firm acquired part of the lender’s portfolio following a deal in June between Kensington and Barclays which saw the latter purchase Kensington’s assets in a £2.3bn agreement.
The transaction is expected to complete in late Q4 2022 and the exact sale will be determined by the value of Kensington’s mortgage portfolio upon completion.
According to reports, Pimco struck a deal with Kensington at the same time to acquire the loans Barclays did not purchase.
The mortgage book acquired by Pimco comprises securitised loans of between £4bn and £5bn, which were signed before October last year.
Earlier this year, it was reported that Barclays, Starling Bank, M&G and Pimco were understood to be bidding for Kensington Mortgages’ assets.
Pimco and Kensington Mortgages declined to comment when approached by Mortgage Solutions.