NatWest has bought Metro Bank’s UK residential mortgages for £3 billion.

The purchase represents more than 13,000 customers who, following the transfer, will continue to be served by Metro Bank.

The purchased portfolio is made up of owner-occupied residential mortgages with a weighted average current loan to a value of 60 per cent.

NatWest said that there might be an adjustment to the payment at completion, under which loans representing up to 10 per cent by value of the portfolio might be excluded from the sale.

If these loans are excluded, this would mean a potential reduction in price of £0.3 billion.

“Growing our mortgage book is an important strategic priority as we build a bank that delivers sustainable returns for shareholders,” said Alison Rose, chief executive, NatWest. “The addition of this loan book will supplement the strong organic growth that we continue to achieve.
She added: “Our strong capital position, well above the target range, continues to provide the flexibility to navigate the uncertain environment and support our customers during the challenging times ahead.”

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