Kensington Mortgages

Press Releases • July, 2023

Kensington Mortgages Acquired by Barclays Bank UK PLC



01 March 2023: Barclays PLC (“Barclays”) announced the completion of Barclays Bank UK PLC’s (“Barclays Bank UK”) acquisition of UK specialist mortgage lender Kensington Mortgage Company Limited (“KMC”) and a portfolio of UK mortgages consisting primarily of mortgages originated by KMC from October 2021 (the “KMC Mortgage Portfolio” and together the “Transaction”).

The Transaction reinforces Barclays Bank UK’s commitment to the UK residential mortgage market. It presents an exciting opportunity to broaden Barclays Bank UK’s existing mortgage product range by adding a best-in-class specialist mortgage lender with an established track record in the UK market, further enhancing its product capabilities consistent with Barclays’ strategic priority to deliver next generation, digitised consumer financial services.

As at completion, the KMC Mortgage Portfolio comprised a total of £2.2bn of loans (approximately 74% owner-occupied and 26% buy-to-let residential mortgages) with a weighted average loan-to-value of 75% at origination. The total consideration payable by Barclays Bank UK for the £2.2bn KMC Mortgage Portfolio and the acquisition of KMC is £2.4bn, subject to customary post-completion purchase price adjustments.

The Transaction has been financed from Barclays’ existing resources and is now estimated to reduce the Barclays Group’s CET1 ratio by approximately 14 basis points (based on the Barclays Group’s CET1 ratio as at 31 December 2022). Note: As part of the Transaction, Barclays Bank UK is also acquiring Kensington Mortgage Services Limited (“KMS”). KMS has £100 of issued share capital and one employee and is an immaterial part of the Transaction.

Mark Arnold

Mark Arnold

Chief Executive Officer, Kensington Mortgages
“Today marks the start of an exciting new chapter of growth for Kensington. We have a strong track-record in the specialist mortgage space, using our proprietary technology, data analytics and human insights to design innovative products and make lending decisions to serve our customer base - the self-employed and those with multiple or variable incomes. As a major UK bank with a broad reach and offering, Barclays is well-placed to support our expansion. We look forward to working with them closely to bring our propositions to a wider range of individuals across the UK. And as we enter this new chapter, we would like to thank Blackstone and Sixth Street for all their support and investment over the last 8 years.”