This acquisition is part of Starling’s plan to expand lending through a mix of strategic forward-flow arrangements
Starling Bank has announced the acquisition of specialist buy-to-let mortgage lender Fleet Mortgages in a £50 million cash and share deal.
Hampshire-based Fleet Mortgages focuses on providing mortgages to professional and semi-professional buy-to-let landlords, only via mortgage adviser distribution channels.
To date, it has originated £2.3 billion of mortgages and experienced zero credit losses, according to the press release.
Starling will become the sole funder of future originations, with Fleet Mortgages able to build on its lending operation by accessing Starling’s deposit base. Day-to-day operations at Fleet will continue unchanged with the company’s existing management team.
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