"This is a good transaction for our members as it strengthens an already strong balance sheet and allows us to focus on our core target market."
Skipton confirmed that the loans have been sold to an affiliate of a fund managed by a global investment management firm.
The portfolio is comprised of approximately 1,600 UK mortgages and the sale aims to reduce the Group’s exposure to current or recent non-performing mortgages.
Amber Homeloans Limited and North Yorkshire Mortgages Limited ceased lending in 2008.
The transaction is due to complete by the end of April 2017, and the financial impact will be reported in the Society’s Interim Results for the six months ending 30 June 2017.
Computershare will continue to service the loans after their sale and also become the master servicer.
David Cutter, Skipton Group Chief Executive, said: “This is a good transaction for our members as it strengthens an already strong balance sheet and allows us to focus on our core target market.”