Barratt in talks over mortgage book sale
housebuilder Barratt Developments said it is in early talks with investors to sell part of its shared equity mortgage book, a set of loans which might whet the appetites of private equity or banks.
Britain’s largest housebuilder by volume confirmed speculation yesterday that it is mulling a partial sale of its portfolio of shared equity loans, worth £170m in total, according to a source close to the deal.
Shared equity loan schemes enable a potential home buyer to secure a new home with a very low deposit.
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Hide AdAnalysts said the sale might attract interest from banks and private equity funds looking to amass other shared equity portfolios.
“(Such a deal for banks) would act as a partial hedge against a mortgage book any way. So they would be getting a relatively regular income back from it,” said Kevin Cammack at Cenkos Securities. Very often these things (shared mortgages) don’t see out their full term.”