Barclays 'plans mortgage sell-off'

BARCLAYS is reportedly in talks to sell part of its mortgage book for £900m in a deal likely to fuel worries about the commercial property market.

The banking group is in advanced talks with General Electric, the US conglomerate, and Citigroup, the US bank, which have made a joint bid. Barclays is hoping to agree a deal by 10 May, the Financial Times reported. Officials for Barclays, General Electric and Citigroup declined to comment.

Barclays has taken a cautious approach to commercial property since the crash of the early 1990s when it posted a 1992 pre-tax loss of £242m after lending heavily at the height of the late 1980s boom.

The assets Barclays is selling are believed to make up Woolwich's commercial mortgage book, which Barclays acquired when it took over Woolwich in 2000. The assets are currently valued at £750-£800m, and are thought to be mainly loans made to small and medium-sized firms to purchase their offices, warehouses, factories or other premises.