Barclays expected acquisition of Standard Life Bank

According to industry figures, Barclays (LON:BARC) which is expected to take over Standard Life Bank (SL) for £226m will enhance its strong position in the market. The mortgage book for the Bank has outstanding balances of approximately £8.8bn and average 48% loan to value (LTV).

The completion of the deal, is expected in Quarter one 2010, the firms will explore joint opportunities in the UK retail long-term savings and investments sector. John Charcol’s senior technical manager Ray Boulger, has agreed that Barclays would be able to add to its market share through reaching new customers, but he regretted the loss of Standard Life Bank.

Boulger added: “The deal will increase Barclays’s access to customers, but it is probably too small to have a significant impact on its operations. However, it is bad for competition that there is one fewer lender. Although Standard Life was uncompetitive towards the end, it was active in the buy-to-let sector and offered deals which other lenders did not.”

A spokesperson for Barclays, Michael O’Toole said the deal was crucial to its aim of becoming the strongest UK retail bank. To read more on this story go to mortgagesolutions-online.com.