"It's been really important throughout the process that we find a buyer that will best meet the needs of our customers."
The Co-operative Bank has agreed to acquire Sainsbury's Bank's mortgage portfolio.
The portfolio comprises of approximately 3,500 customers with balances of around £479 million.
Following completion, Sainsbury's Bank customers are expected to transfer to The Co-operative Bank over a period of one year to ensure a smooth process.
Nick Slape, CEO of The Co-operative Bank, said: "We are delighted to have agreed this transaction with Sainsbury's Bank. Once the transfer activity is complete, we look forward to welcoming the new customers who will benefit from our ambitious new technology platform, which will simplify our banking services and will make us more efficient, giving us the flexibility to introduce new products and services.
"This transaction, our first portfolio acquisition in more than a decade, further demonstrates the progress we have made in recent years and our strength in what remains a competitive UK mortgage market."
Jim Brown, CEO of Sainsbury's Bank, commented: "We're pleased to confirm we have agreed the sale of our mortgage book to The Co-operative Bank. Closing the chapter on our mortgage offering is a big step in simplifying our business.
"It's been really important throughout the process that we find a buyer that will best meet the needs of our customers. We chose The Co-operative Bank as it's a well-known UK mortgage provider, committed to providing excellent customer service, so we are confident that The Co-operative Bank will serve our customers well."
