Skipton Building Society is acquiring the mortgage portfolio of insurer CGU.
The deal will bring £150m assets under the remit of its wholly-owned subsidiary Skipton Mortgages which specialises in buying mortgage files from other lenders.
The acquisition prompted Skipton to reassure thousands of worried borrowers the terms of their mortgage deals will be honoured.
Skipton spokesperson Mark Smitheringale says: “We are trying to grow our mortgage business and block-buying assets onto the mortgage sheet is one way of doing that. All the existing deals these borrowers have will be honoured.”