Money Marketing, Mortgage Strategy’s sister publication, reports that IL&P has had over 10 bids for CHL which have been deemed acceptable. A sale was due to complete in the first quarter of the year but has been put on hold until June at the earliest, when the Central Bank of Ireland is due to finish its review.
The Central Bank of Ireland is reviewing the loan books of bailed-out banks Allied Irish Bank, Bank of Ireland and IL&P and will make recommendations about the future structure of these institutions. In March 2011, the Central Bank of Ireland ordered IL&P to raise €4bn to cover potential losses from homeloans following stress tests of the country’s banks.
CHL withdrew from new lending in March 2008 and currently has £6.5bn of assets under management. The proportion of its mortgages more than three months in arrears is 1.45% compared with an industry average of 2.14%.
An IL&P spokesman says: “The sale process has been paused while there are ongoing discussions with stakeholders about the future strategy of IL&P.”
Geoff Laird, principal at Buy To Let Funding Services, says: “The team at CHL has done a tremendous job and it is not surprising that such a good level of interest has been shown in it.”