(Bloomberg) -- Barclays Plc has agreed to buy Kensington Mortgage Company Ltd., expanding the reach of its offering in Britain’s housing market.

The lender’s UK unit will pay about £2.3 billion ($2.8 billion) for the specialist mortgage lender that is owned by Blackstone Inc. and Sixth Street, according to a statement Friday.

Kensington, which is based in Maidenhead, England, and has around 600 employees, originated approximately £1.6 billion of mortgages in the year to March 31. Barclays Bank UK will also acquire a portfolio of UK mortgages -- expected to total about £2 billion at the end of the year -- as part of the deal.

Kensington targets the self-employed, those with multiple incomes and the over 55s, according to its website, cohorts that major banks often struggle to reach. It is the most frequent issuer of mortgage bonds in the UK market and was listed on the London Stock Exchange from 2000 until 2007.

The UK housing market is a key business for Britain’s lenders. It was supercharged by the pandemic, although the market is beginning to cool as interest rates rise and warnings multiply that the economy is headed for recession.

The acquisition will be financed from the British bank’s “existing resources” and is expected to reduce its CET1 ratio -- a key measure of capital strength -- by about 12 basis points. It is subject to regulatory approval and is expected to complete late this year or early next.

Bloomberg reported earlier this month that Barclays was nearing a deal for Kensington.

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