Tesco Bank has sold its mortgage portfolio to Lloyds Banking Group for £3.8bn.
The 23,000 affected mortgage customers will transfer to Halifax, a division of Bank of Scotland, which is itself a wholly-owned subsidiary of Lloyds Banking Group.
The mortgage portfolio has a lending balance of £3.7bn and generated pre-tax profits of £9.1m in the 2018/19 financial year.
Gerry Mallon, Tesco Bank chief executive, said: “In May we announced our decision to stop new mortgage lending while we explored our options to sell the mortgage book.
“Our focus is on how we best serve Tesco customers and align our resources effectively to their needs while ensuring that our offer remains sustainable in the long term.”
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