GE Money stops lending following mortgage book sale

GE Money stops lending following mortgage book sale

GE Money Home Lending has stopped lending following the sale of its UK lending portfolio.

The firm has signed an agreement to sell its portfolio of first line mortgage loans from its UK Home Lending business, representing aggregate lending ending net investment of about $5.8bn (£3.6bn) to an investment consortium made up of opportunistic funds.

These are managed by Blackstone, TPG Special Situations Partners (TSSP) and CarVal Investors.

The loans have a face value of $5.9bn (£3.8 bn).

The transaction is expected to close next month. Terms of the transaction were not disclosed.

Only full applications currently with GE’s Watford office will be processed and brokers will no longer be able to undertake decision in principles.

Applications must be offered by 4 December and additionally, all pipelines business must be completed on or before 11 March 2016.

Keith Sherin, GE Capital chairman and chief executive, said: “This transaction represents the sale of almost all our remaining UK mortgage business, which successfully provided financing for UK home owners.”