Why the City can’t stop talking about OSB  

OSB Group, the lender behind brands such as Kent Reliance and Precise Mortgages, remains the subject of persistent City takeover speculation despite appointing a new boss. Its specialist mortgage business could appeal to a large bank seeking to replace costly retail savings funding with cheaper deposits, but sources say the price may make a deal difficult.

OSB reported £26.3bn in customer loans and £25bn in retail savings; interest on deposits cost £478m in the first half of 2026, squeezing its forecast net interest margin to about 2.2 per cent. HSBC explored a possible bid last year but made no formal offer, while Barclays is often mentioned as a potential buyer, though it has not held active talks. Past volatility, including a 2021 fraud-related exposure and a 2023 profit warning, adds to questions about the lender’s value.