Fleet Mortgages provides mortgages to professional and semi-professional landlords and, to date, has originated £2.3bn of mortgages and experienced zero credit losses.
It currently has approximately £1.75bn of mortgages under management.
Starling will become the sole funder of future originations, with Fleet Mortgages able to build on its lending operation by accessing Starling’s growing deposit base.
The acquisition is part of a wider plan at the bank to expand lending through a mix of strategic forward-flow arrangements, organic lending and targeted M&A activity.
TLT led on all legal aspects of the acquisition, which included the negotiation of the overall transaction terms and working closely alongside Starling and its other advisers to ensure that the bank’s key objectives were achieved.
Alice Gardner, partner at TLT, said: “We are delighted to support Starling with its first corporate acquisition, which will form an integral part of its wider growth plans.
“The continued boost seen in the housing market during the pandemic and Starling’s acquisition of Fleet Mortgages will allow the bank to build on its forward-flow arrangements as the market continues to thrive.
“This acquisition is a great example of how clients can really benefit from strategic M&A activity as they strive to develop and grow new areas of business.”
