The purchase is the third arising from an agreement announced in December 2003 to acquire from GMAC-RFC a minimum of £400m, and up to £1.4bn, of loans in 2004 in four tranches. The total amount acquired by Mortgage Express so far in 2004 is £717m. All lending in the portfolio is secured on UK residential property and has a similar credit risk profile to previous portfolio acquisitions.
The acquired mortgages are expected to be, by value, approximately 22% buy-to-let, approximately 45% self-certified, with the remainder standard mortgages. The book is expected to have an average loan size of approximately £131,000 and an average loan to value of approximately 70%.
Tim Dawson, managing director at Mortgage Express, says: ''We are pleased to have again worked with GMAC-RFC on this purchase, which is a part of our strategy to grow our business both organically and through acquisition''.