Metro Bank, the trendy challenger best known for the bowls of dog biscuits it leaves around its stores, says it has just bought a portfolio of UK mortgages for just under £600m.
The lender said it had bought the portfolio, which was "well diversified across the UK", from Cerberus European Residential Holdings for £596.7m.
The portfolio, which has a similar credit risk profile to the lender's current mortgage book, is 92 per cent made up of buy to let mortgages, with the remainder made up of owner-occupied properties.
Metro said the amount it paid represents the value at which the portfolio will be taken onto its balance sheet. The acquisition is being financed using cash it already has.
The acquisition means the lender's loan to deposit ratio is now 78 per cent - edging closer to its guidance of 80 per cent by 2020.
"The acquisition of this... portfolio supports our high-growth, organic business model as we track ever closer to our 2020 guidance," said Craig Donaldson, Metro Bank's chief executive.
Last month Metro Bank celebrated the opening of its one millionth account, having posted its first-ever profit in the first quarter of this year, when it reported an underlying profit of £2m, while assets increased 57 per cent to £11.6bn.