J Sainsbury PLC (LSE:SBRY) banking arm, Sainsbury's Bank, has its mortgage portfolio to the Co-operative Bank in a cash deal worth around £464 million
The sale follows an announcement in September 2019 that it would be stopping all new mortgage sales and was reviewing options for the existing mortgage book.
Jim Brown, CEO of Sainsbury's Bank said: "Closing the chapter on our mortgage offering is a big step in simplifying our business."
In a statement, the food retailer said the gross asset value of the mortgage book as at April 30 was £479 million.
The deal is expected to complete alongside the transfer of beneficial ownership on August 15.
Following a period of transition of up to one year from completion, Sainsbury's Bank mortgage customers will transfer to The Co-operative Bank.
Proceeds from the deal will be used to help optimise the overall cost of funding for Sainsbury's Bank.