The assets form part of an investment used to support Just’s insurance liabilities, according to the group, and proceeds will be reinvested in a range of fixed interest assets to further back its liabilities.

The outstanding loan balance of the mortgages stands at £537m and have an IFRS value of £772m.

Tax loss incurred will total £35m, including the impact on insurance liabilities from the new asset mix, the group said.

This is the third LTM portfolio Just has sold over the last fifteen months.

“I am very pleased to have completed our third LTM portfolio sale, which, together with the three NNEG hedges we have completed and the reduction in new business LTM backing ratio we have achieved over the last two years, leaves our solvency position much more resilient to stresses in the UK housing market,” says Just Group chief executive, David Richardson.

“This, alongside both our improved capital base and organic capital generation, has established a strong foundation for the business, from which to deliver profitable and sustainable growth,” he adds.

The group will announce its financial results for the year ending 31 December 20221 on 10 March 2022, at which time it will provide an update on its solvency II position.

The lender launched a lifetime mortgage product just three years ago. It was reported to have greater flexibility than most, with an array of interest paying options.