Manchester-based Co-operative Bank has announced an agreement to acquire Sainsbury’s Bank’s mortgage portfolio.

The portfolio comprises 3,500 customers with balances of around £479 million.  

 Co-operative Bank CEO Nick Slape said: “We are delighted to have agreed this transaction with Sainsbury’s Bank.

“Once the transfer activity is complete, we look forward to welcoming the new customers who will benefit from our ambitious new technology platform, which will simplify our banking services and will make us more efficient, giving us the flexibility to introduce new products and services.

“This transaction, our first portfolio acquisition in more than a decade, further demonstrates the progress we have made in recent years and our strength in what remains a competitive UK mortgage market.”

Sainsbury’s Bank CEO Jim Brown said: “We’re pleased to confirm we have agreed the sale of our mortgage book to The Co-operative Bank. Closing the chapter on our mortgage offering is a big step in simplifying our business.

“It’s been really important throughout the process that we find a buyer that will best meet the needs of our customers. We chose The Co-operative Bank as it’s a well-known UK mortgage provider, committed to providing excellent customer service, so we are confident that The Co-operative Bank will serve our customers well.”