British mutual financial institution Nationwide has confirmed that it is in talks with Sainsbury’s Bank to purchase its mortgage book.
A spokesperson for Nationwide said: “We can confirm we are in discussions with Sainsbury’s Bank regarding the purchase of its mortgage book.
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“At the moment, this may or may not lead to a deal in the future. It’s too early to comment further on that.”
It is estimated that Sainsbury’s mortgage book is worth nearly £1.9bn.
In 2018, Sainsbury’s had a mortgage customer base of approximately 10,000 mortgages and lent £1.1bn.
The discussions follow Sainsbury’s announcement in September last year to exit the mortgage market.
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By GlobalDataIn the same month, the bank also announced that it will no longer accept new mortgage applications.
Nationwide, with more than 700 branches, is a key supplier of mortgage loans and savings in the UK.
It also provides personal banking services such as loans, credit cards, bank accounts and insurance products.
Sainsbury’s decision to sell its mortgage business follows the sale of Tesco’s mortgage book which was bought by Lloyds Banking Group (LBG). Tesco’s mortgage book was valued at £3.7bn ($4.11bn).
According to media reports, Lloyds Banking Group is also interested in buying Sainsbury’s mortgage book.
Established in February 1997, Sainsbury’s was the first major supermarket to open a bank in the UK.
In January 2014, Sainsbury’s took 100% ownership of Sainsbury’s Bank.
It provides a suite of financial services such as credit cards, savings and loans, travel money and car, home, pet, travel and life insurance by online and telephone.
