The transaction is expected to close in December 2015, but terms have not been disclosed.
GE Capital first announced plans in April to put its specialist lending subsidiary, GE Money Home Lending, up for sale. The firm is now embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets.
In total, the combined sales of the UK Home Lending portfolios, including this transaction, will contribute nearly $1 billion of capital to the target.
Keith Sherin, GE Capital chairman and CEO, said:
“This transaction represents the sale of almost all our remaining UK mortgage business, which successfully provided financing for UK home owners.
“We began this year with around US$13 billion of ENI and when this transaction closes, we will have approximately US$0.4 billion of ENI remaining in our UK mortgage business. This is an important step as we continue to execute on our plan to sell most of the assets of GE Capital.
“We are pleased with the progress we are making to reach and close agreements for our businesses and assets. The speed and value we have achieved is a testament to the hard work of our GE Capital teams around the world."
