Mortgages  

Skipton sells off mortgage servicing business

Skipton Building Society today (18 November) sold 100 per cent of the issued share capital of its mortgage servicing business.

It was back in July that Skipton Building Society announced the sale of its mortgage servicing subsidiary, Homeloan Management Limited, in a deal worth more than £47m, to Computershare Ltd.

Skipton said it will receive an initial consideration of £47.5m in exchange for the sale of its 100 per cent shareholding of the firm, plus an adjustment for surplus working capital together with potential additional payments based on revenue growth in 2015 and 2016.

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The initial consideration will generate a profit of £26m and will appear in Skipton’s results in the second half of this year. The firm said that the sale of the business signalled significant business opportunities for both parties.

David Cutter, chief executive of Skipton, said: “HML has been a major success story for Skipton of which we are very proud.

“However, we anticipate major growth opportunities arising in the mortgage outsourcing market which are best seized by the investment from a large multinational company.”

Skipton’s results for the six months to the end of June 2014 revealed that HML delivered a profit before tax of £200,000, compared to £300,000 in the first half of 2013.