OneSavings Bank plc has completed the purchase of a portfolio of UK first charge residential mortgages.

The outstanding balance of the Portfolio was £112m as of 29 February 2016 and the portfolio is being acquired at a discount to par.

Approximately 94% of the mortgages are owner occupied with the remainder being buy-to-let. The portfolio has a weighted average seasoning of around nine years, with a weighted average current loan to value of around 75%.

The portfolio has a weighted average interest rate of around 3.2%, principally linked to 3M Libor.

The acquisition of the mortgage loans will be satisfied by cash from the company’s existing resources.

Jens Bech, group commercial director of OneSavings Bank, said: “We are delighted to further demonstrate our ability to acquire high quality loan portfolios at attractive prices, which complements the company’s organic origination strategy.

“We have a disciplined investment process and make acquisitions where there is a strong fit in terms of strategy, risk profile and projected financial returns. We will continue to evaluate inorganic opportunities as they arise.”