Sainsbury’s Bank urged to move borrowers to a regulated lender after pulling out of mortgage market
- The bank has refused to rule out selling the loans to a private equity firm
- Conservative MP Kevin Hollinrake has written to Sainsbury’s Bank boss
Sainsbury’s Bank is under pressure to guarantee that its mortgage customers won’t be sold to a ‘vulture fund’ or private equity firm.
MPs have urged the bank to make sure its customers are moved to a regulated lender after it emerged in September that it would pull out of mortgage lending.
The bank has refused to rule out selling the loans to a private equity firm. That means borrowers could be transferred to a company unable to offer them a new deal and they could struggle to remortgage elsewhere.
Sainsbury’s Bank has refused to rule out selling the loans to a private equity firm
Conservative MP Kevin Hollinrake has written to Sainsbury’s Bank boss Jim Brown to ask for a meeting to discuss the bank’s plans.
‘The last thing we want to see is a loan book sold off to an unregulated lender, which causes tremendous problems,’ he said.
Last year The Mail on Sunday revealed that some of the 60,000 homeowners whose Northern Rock mortgages were sold to US giant Cerberus for £13billion in 2015 were stranded on high interest rates.
Cerberus told The Mail on Sunday last week that it was not interested in Sainsbury’s loans.