Source - SMW
Metro Bank has completed the purchase of a portfolio of UK mortgages from Cerberus European Residential Holdings B.V. for £596.7m.

All lending in the portfolio was secured on property, well diversified across the UK, and had a similar credit risk profile to Metro Bank's current mortgage book.

The portfolio comprised about 92% buy-to-let mortgages, with the remainder being owner occupied. 

It had a weighted average seasoning of about 10 years and the weighted average loan to value is about 70%, with a current expected pay rate of about 1.6% principally linked to the Bank of England base rate.

The consideration of £596.7m represented the value at which the acquired mortgages would be taken on to the bank's balance sheet and was being financed using cash from existing resources. 

The portfolio is being acquired at a discount to par.