Uk commercial mortgage broker

ABBEY National has agreed to sell its consumer credit business, First National.

The buyer is GE Consumer Finance, the consumer credit services arm of General Electric of the USA.

The deal, for 848 million [pounds sterling], will see GE Consumer Finance take over a company with assets of 4.8 billion [pounds sterling] and 1,400 employees. It will also add 2.1 million active customers.

GE confirmed that First National would keep its name.

First National's litigation funding and motor finance businesses are not included in the sale and Abbey is said now to be "evaluating various options" for these businesses.

GE Consumer Finance's UK group managing director Stuart Sinclair said: "We are very excited by the opportunities this acquisition brings to our operations in terms of both an enhanced product range and new broker relationships.

"Our intention is to build on the further opportunities for growth that this acquisition provides, and the senior management teams are working closely to ensure continuity for both customers and intermediaries."

Speculation that Abbey National was planning to sell First National had been rife since last summer when the bank revealed plans to "get back to basics to concentrate on mortgage lending and other retail financial services".

In November, it said it was in the process of refocusing its strategy on core UK personal financial services--a warning that First National's days with the Abbey group were likely to be numbered.

In the event, Abbey National decided First National's brand and strengths lie in different markets and it operates largely independently of Abbey's other businesses.

"There is limited customer overlap and opportunities to cross-sell. Therefore, First National does not have a natural position in the new group," said Abbey National.