Market Harborough Building Society has acquired a £120m residential mortgage portfolio from Gen H as it looks to expand its presence in specialist lending while maintaining its focus on responsible growth and underserved borrowers.
The portfolio comprises residential mortgages originated and managed by Gen H, with a particular focus on first-time buyers and customers with more complex borrowing requirements.
The building society said the acquisition supports its strategy of expanding into adjacent lending markets while maintaining prudent risk management, responsible lending and long-term value for its members.
The deal also reflects a shared focus between the two organisations on improving access to home ownership for borrowers who can face additional barriers, including first-time buyers, self-employed applicants and foreign nationals.
The transaction comes as lenders continue to respond to changing borrower profiles, affordability pressures and increasingly diverse employment patterns, creating greater demand for more flexible underwriting outside traditional lending criteria.
Iain Kirkpatrick (pictured), chief executive officer of Market Harborough Building Society, said: “This acquisition is an important and commercially attractive step in our growth strategy.
“We want to grow the Society in a considered way, deploying our capital where we can achieve appropriate returns, manage risk carefully and stay true to our purpose as a mutual.
“This portfolio allows us to broaden our lending reach, support borrowers whose needs may not always fit standard models and build further resilience in our balance sheet.”
“At a time of renewed focus on the role mutuals can play in financial services, this transaction shows how building societies can grow responsibly, compete effectively and bring member-owned values to a broader range of markets.
“Supporting underserved borrower groups aligns closely with the founding purpose of our sector and our ambition to make Market Harborough Building Society stronger, more relevant and more impactful for the future.”
Graham McClelland, chief executive officer of Gen H, added: “We’re very pleased to have reached this agreement with Market Harborough Building Society.
“The portfolio reflects high-quality lending originated through Gen H which benefits underserved groups of aspiring homeowners, and it is important to us that we align ourselves with industry partners who share our values.
“Market Harborough brings deep lending experience and a clear mutual purpose, making it a strong long-term home for this portfolio.”
Market Harborough said the acquisition could also form the basis of a broader relationship between the two organisations as it continues to explore opportunities that fit its strategic objectives and help more creditworthy borrowers access home ownership.
