Skipton announces sale of HML

SKIPTON Building Society has sold its mortgage servicing subsidiary, Homeloan Management (HML), it was announced today.

The mutual said the deal signals positive opportunities for both businesses. Contracts for the sale have been exchanged with Computershare.

In exchange for its 100 per cent shareholding, Skipton will receive an initial consideration of £47.5m, plus an adjustment for surplus working capital, together with potential additional payments based on revenue growth in 2015 and 2016. The initial consideration will generate a profit of £26m to be recognised in Skipton’s results in the second half of this year. The announcement follows a 26-year period in which Skipton established and grew HML to become one of Europe’s biggest third party mortgage administrators.

Sign up to our Business newsletter

Sign up to our Business newsletter

Skipton said that for HML, the deal marks the start of a new era which will enable it to better capitalise on the market opportunities which are developing.

Skipton group chief executive David Cutter said: “HML has been a major success story for Skipton of which we are very proud. However, we anticipate major growth opportunities arising in the mortgage outsourcing market which are best seized by the investment from a large multinational company. We believe Computershare will be an ideal new owner for HML and I wish all staff at HML the very best for the future.”

HML’s head office will remain in Skipton, and it will continue to be led by Andrew Jones.

The sale is subject to FCA approval.