GE Money stops lending following loan book sale

House-Home-Property-Ladder-Mortgage-700x450.jpg

GE Money Home Lending has stopped lending after its parent company completed a deal to sell off the rest of its loan book.

Parent GE Capital put the specialist lender up for sale in April, saying it wanted to concentrate on its industrial and manufacturing businesses.

GEC has sold a £4bn book to a consortium of Blackstone, TPG Special Situations Partners and CarVAl Investors. This completes the sell-off of nearly all of GE Money’s £8.6bn UK loan book.

GE Capital chairman and chief executive Keith Sherin says: “This transaction represents the sale of almost all our remaining UK mortgage business, which successfully provided financing for UK home owners.”

The deal means GE Money has ceased lending with immediate effect.

3mc director Doug Hall says: “Personally, I think it is a sad day for the industry. GE Money has been one of the stalwarts and for them to come away from the acquisitions market a shame because they have been big advocates of the specialist lending arena.”

A statement from packager All Types of Mortgages says: “We would like to thank all of the GE staff for their help with AToM’s cases over the years and for their contribution to the specialist sector. This is a lender who has been of great value to AToM and without doubt will be missed. We wish them every success for the future.”

Brokers will no longer be able to undertake decision in principles and only full applications currently with GE’s Watford office will be processed.

Applications must be offered by 4 December and no amends or material changes to any offers will be accepted.

All pipelines business must be completed on or before 11 March 2016.